Question

Select a country outside of the Caribbean and evaluate its level of political risk. Indicate strategies that multinational enterprises operating in that country might use to cope with the identified risks.

Please don't copy and paste the answer with India.

Answer 1

Protest Risk: One of the main hindrances to the business process can be a protest by the locals against a particular company, which may lead to a fear in the people who deal directly or indirectly with the company business. The life of the workers will be on risk due to the protests.
Economic Risk: In this type of risk the companies may be levied high tax rates by the local government which can have the great impact on business and create a challenge like situation for the company to handle. For being on the safe zone companies keep their eyes on the unstable economy, any change in the political climate as well as on the high inflation rates.

Takeover Risk: Despite promising fair and free environment for the transaction of business governments can try to disrupt a company by taking its control or deprive the company rights which can lead to huge losses.
Violence: One of the risks that a multinational company faces in a host country. The employees of the company are attacked by the political groups. It may range from threats and kidnappings to killing of employees. To mitigate these risk companies, hire securities in order to protect their employees and business process but sometimes it may not be enough.

One of the ways to mitigate the political risk is by way of insurance, which is believed to be a powerful tool. In addition to this companies hire professional risk officers or someone whose sole responsibility is to deals with the risk management. Other methods involve the proper education and tanning of the staff and clear evacuation plans to be put into force in case of any risk or emergency in order to minimize the losses.