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Identify, with examples, groups that may represent a significant political risk for an organisation that is considering engaging in Foreign Direct Investment. Solution When companies are considering Foreign Direct Investment (FDI) particular emphasis should be placed on determining any potential political risk. Rugman and Hodgetts (2002) identified a number of groups which may be potentially responsible for political risk. These are listed below along with examples of such groups. Current government/ruling regime of that country This includes the government.

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Identify, with examples, groups that may represent a significant political risk for an organisation that is considering engaging in Foreign Direct Investment. Solution When companies are considering Foreign Direct Investment (FDI) particular emphasis should be placed on determining any potential political risk. Rugman and Hodgetts (2002) identified a number of groups which may be potentially responsible for political risk. These are listed below along with examples of such groups. Current government/ruling regime of that country This includes the government

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