Description
The Role of Political Risk in International Business Expansion: A Mixed-Methods Case Study of Emerging Markets
Abstract
Political risk of expansion appears to be of paramount importance in international business expansion, especially when the policy of governments changes. Such changes impact different sections of the business world. To sustain success, businesses would like to expand globally but are faced with adverse effects if the governments change their course of action. The course of action by the new government appears to search for new investments in business for growth and development purposes. In this pursuit, existing businesses are also facing instability. Apart from political, economic volatility as well as troubles with technology, and infrastructure among others are other challenges that emerge in the company during expansion.
The mixed approach method that combines both quantitative and qualitative techniques these are helpful to assess political risk. This method supports for decision making about investment strategies and market entry in business. Quantitative analysis tells about GDP growth and foreign exchanges which are instable in potential politics. This analysis allows to know about potentiality for future political risk. How political risk impacts on profitability of business that information evaluated from multiple industries. However this qualitative analysis allows to identify government officials who are potentially influence in business operations.. By that political risk may reduce for international business expanses. By providing strategies and risk management these are used by business leader to reduce political risk.
This research talks about political risk in international business expansions and methods that are helpful to overcome risks in international business. This research also includes challenges and loss that faced by international business expansions. And also provides some recommendations to overcome these challenges. This study helps to know decision making strategies to tell how to deal with international business expansions. While expansion in to  emerging market takes place that leads to know more about risk management in business.
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Influence of Political Risk on International Business Operations in Germany
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