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:warning:Managing Country Risks :warning: Country-Risk1-300- - Coggle…

- - - - economic development reduces the # of terrorists
      - democracy do not affect negatively
      - PSU determines no effect of terrorism in FDI
      - Spain and Greece determine countries that presents threats have low FDI
    - - Economic environment
      - Level of difficulty by doing business
      - rule of law and corporate governance
      - connection corporate - government
      - public discord
      - CONSUMER BEHAVIOR!
- - - - Environmental waste calls
      - dependent of laws, which frequently changes
      - sometimes they focus too much on net income
  - - - not directed to a firm
      - countrywide
      - may affect firm performance
      - reduce the impact by stop operating
      - Government risks
        
        Mass nationalizations
        
        Regulatory changes
      - Instability risks
        
        Mass labor strikes
        
        Urban rioting
    - - directed at a particular company
      - reduce the impact by creating security against terrorist attacks
      - Government risks
        
        Discriminatory regulations
      - Instability risks
        
        Sabotage
        
        Kidnapping
        
        Firm-specific boycotting
  - - - Capacity of a foreign state to fulfill its obligations to investors
    - - A foreign central bank will alter the foreign exchange regulations
    - - Political and social events that can have an impact upon foreign investment