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Chapter 4

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

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Chapter 4

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  1. Chapter 4 Political Environment

  2. Chapter Outline • Multiplicity of Political Environments • Types of Government: Political Systems • Types of Government: Economic Systems • Political Risks • Privatization

  3. Chapter Outline • Indicators of Political Instability • Analysis of Political Risk or Country Risk • Management of Political Risk • Measures to Minimize Political Risk • Political Insurance

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

  5. 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

  6. Political Risks • Confiscation • Expropriation • Nationalization • Domestication and Privatization • Creeping Expropriation • Terrorism and Kidnapping

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

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

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