When a firm wants to introduce or continue business in foreign markets, it becomes subject to associated political risks to be assessed and managed. Help is available for understanding macro-level political risk, that is, political risks in the various industries and all enterprises in entire countries or geographical regions. However, surprisingly little guidance exists on which to identify and evaluate the political risks of specific firms, called micro-political risks. Here, we offer some new insights into the nature of the micro-political risks in the host country, illustrating how it is related to the economic, social and government forces. We collected a number of firm-specific variables that may affect the micro-political risk profile of the company and the promotion of innovative methodologies that managers can address these variables and the development of micro political risk assessment of the firm. Examples of micro-political situation of risk presented, along with a discussion of the implementation of the proposed methodology. "Hide
by Ilan Alon, Theodore T. Herbert Source: Business Horizons 11 pages. Publication Date: March 15, 2009. Prod. #: BH316-PDF-ENG
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