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Discuss the following: 1. Trade Limitation

2. Obstacles to investment

3. Instability in Politics

• Corruption
• Social Unrest
• Attitudes of Nationals

4. Government Intervention

• Confiscation
• Expropriation
• Nationalization

POLITICAL RISII ENCOUNTEREO BY MNES TRADE LIMITATION . The capacity of MNEs to export or import products and services into overseas markets may be restricted. INSTABILITY IN POLITICS - Political unrest in foreign markets, such as coups, civil wars, or terrorist attacks, may have an impact on MNEs. 1.1::orruption - Corruption and bribery became acute and prevalent not only among bureaucrats but also among politicians during the early stage of political instability. 2.50am Unrest - Social unrest is caused by clashes between or among community groups, religious groups and ethnic groups 3.Attitudes of Nationals - The negative attitude of nationals towards foreign business and foreigners is a greater risk. OBSTACLES TO INVESTMENT . MNEs could encounter obstacles to investing in overseas markets, such as rules on foreign ownership or requirements for government nermission. GOVERNMENT INTERVENTION . The term "government interference" describes activities performed by the government that obstruct daily commercial operations. [Confiscation - The process of nationalisation of a property without compensation. 2.Expropriation - The process of nationalisation of a property with compensation. 3.Nationalizarion - The process of shifting the ownership or private property from private individuals or institution to the Government