political enviornment

political enviornment - Transcript

Chapter 4
Political Environment

Chapter Outline
Multiplicity of Political Environments
 Types of Government: Political Systems
 Types of Government: Economic Systems
 Political Risks
 Privatization

Chapter Outline
 Indicators of Political Instability
 Analysis of Political Risk or Country Risk
Management of Political Risk
Measures to Minimize Political Risk
 Political Insurance

Types of Governments:
Political Systems
 Absolutist (closed system)
- dictatorships
- absolute monarchies
- communist countries
Democracy (open system)
- parliamentary systems
- multiparty systems

Types of Governments:
Economic Systems
 government interference vs. market orientation
 public ownership vs. private ownership
 Communism
 Socialism
 Capitalism
- Managerial Capitalism
- Personal Capitalism
- Cooperative Capitalism
- Frontier Capitalism

Variations of Capitalism
 State-guided capitalism
Oligarchic capitalism
 Big-firm capitalism
 Entrepreneurial capitalism
Responsible Global Capitalism
 Karma capitalism

Political Risks
Confiscation
 Expropriation
Nationalization
Domestication and Privatization
Creeping Expropriation
 Terrorism and Kidnapping

Measures to Minimize
Political Risks
 Stimulation of the Local Economy
 Employment of Nationals
 Sharing Ownership
 Being Civic Minded
 Political Neutrality

Measures to Minimize
Political Risks
 Behind-the-Scenes Lobby
Observation of Political Mood and Reduction of
Exposure
 Political Insurance
Other Measures