Chapter 6: Political Environment: A Critical Concern

Question 1

5 Main political issues

Answer 1

1. unstable gov’t
2. Changes in political parties during elections
3. Nationalism
4. Animosity toward certain countries
5. Trade Disputes

Question 2

3 Political risks of entering new country

Answer 2

1. Confiscation
2. Expropriation
3. Domestication

Question 3

Confiscation

Answer 3

Seize assets without payment

Question 4

Expropriation

Answer 4

Turning private goods into public goods

Question 5

Domestication

Answer 5

Enter country as partner instead of competitor

Question 6

3 ways to minimize political risks of entering new country

Answer 6

1. Know
2. Assess
3. Control