Political and Economic Risks

Read the overview below and complete the activities that follow.

In this activity you will be reviewing the various key terms associated with political and economic risks as presented in the chapter. Here specifically we will focus on political and economic risks in global business. These include nationalization, confiscation, and expropriation.

The political environment plays an important role for the international marketer. Government involvement in business activity abroad, especially foreign$-$controlled business, is much greater than business is accustomed to in the United States. Firms must strive to make their activities politically acceptable, or they may be subjected to a variety of politically condoned harassment. Besides harassment, uncertainty of continuity in governmental policy is also a concern. An unfamiliar or hostile political environment does not necessarily preclude success for a foreign marketer if the company becomes a local economic asset and responds creatively to the issues raised by political and social activities. The U$.$S$.$ government may aid an American business in its foreign operations.

Roll your cursor over the names of each fictional country to read their actions. Then drag the names under the corresponding control.