Political risks overview political risk outside of

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Political Risks Overview Political Risk Outside of Governmental control Foreign Government Action War Terrorism Revolution Extorsions Strikes Against Ownership Confiscation Expropriation Domestication Against Operations Exchange Control Local Content Import Restrictions Tax Controls Price Controls Labor Problems Legal Favoritism
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Copyright © Dr. Tomasz Lenartowicz Political Risks: Ownership NATIONALIZATION (A gov’t takes ownership of a firm) 1. CONFISCATION 2. EXPROPRIATION 3. DOMESTICATION REASONS WHY: Doctrine Political » Strategic industries » Economic aspects
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Copyright © Dr. Tomasz Lenartowicz Political Risks: Operations Exchange Controls Import Restrictions Local Content Tax Controls Price Controls Legal Favoritism Labor Problems
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Copyright © Dr. Tomasz Lenartowicz Strategy To Lessen Political Risks MINIMUM RISK: Start with Licensing SOME RISK: Joint Ventures Invest in Marketing and Distribution Plan Domestication
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Copyright © Dr. Tomasz Lenartowicz Political Systems 1. Democracy 2. Totalitarianism Theocratic Secular (military) Communism
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Copyright © Dr. Tomasz Lenartowicz Political System and Economic Progress 1. Growth requires innovations 2. Innovation trend requires: Economic Freedom Strong legal system (No protectionism) GDP/ capita Economic Freedom
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Copyright © Dr. Tomasz Lenartowicz Political economy: The Trend India U.K. Chile Mexico China Russia Political System Totalitarian Democratic Planned Mixed Free Market Economic System ?
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Copyright © Dr. Tomasz Lenartowicz Economic Freedom and the World
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