Examine the examples of political risk within countries, Financial Management

Examine the Examples of political risk within countries

  • Outbreak of national war, unrest, civil war or riot.
  • Nationalisation of industriesfor example confiscation of assets from private sector by a nations government to become state owned and controlled.
  • Enforcement of international trade barriers for exampleexport and imports tariffs and quotas, or exchange controls over a nation's domestic currency to influence its exchange value.
  • Changes in regulations and taxation policy e.g. UK governments 'windfall tax 'based on "the excess profits of privatised utilities".
  • Expropriation of assets or Restrictions on dividends out of a country.
  • Political instability for example elections may change policy.
  • New regulation or legislation introducedfor example changing laws about foreign ownership, employment andcompetition.
  • Conflict of interest between a government's aims and organisations aims.

 

Posted Date: 9/3/2013 1:49:37 AM | Location : United States







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