Political risk refers to actions by foreign governments that can negatively impact investments. This includes war, government seizures of property, restrictions on moving profits out of the country, contract repudiation, currency inconvertibility, discriminatory taxation, embargoes, expropriation of property, and nationalization. Companies can purchase various types of political risk insurance to mitigate these risks when investing abroad. Risk management strategies also include diversifying investments across several countries, negotiating protection clauses in contracts, and pursuing bilateral investment agreements between the home and host countries.
this chapter we are going to explain key, components of the BoP, and explain how the international flow of funds is influenced by economic factors and other factors
this chapter we are going to explain key, components of the BoP, and explain how the international flow of funds is influenced by economic factors and other factors
international trade theory
,
why is free trade beneficial
,
what role does government have in trade
,
what is mercantilism
,
what is the heckscher-ohlin theory
,
how does the theory of absolute advantage work
,
is a current account deficit bad
,
what is smith’s theory of absolute advantage
,
what is the balance of payments
,
what is new trade theory
,
what is ricardo’s theory of comparative advantage
> To define globalization and international business and show how they affect each other
> To understand why companies engage in international business and why international business growth has accelerated
> To discuss globalization’s future and the major criticisms of globalization
> To become familiar with different ways in which a company can accomplish its global objectives
> To apply social science disciplines to understanding the differences between international and domestic business
> To define globalization and international business and show how they affect each other
Foreign Direct Investment (Theories of FDI)Mamta Bhola
the opening up of the national frontiers has led to a tremendous cross border movement of capital. This has led to a large number of MNC's that have invested foreign capital in a number of countries. MNC's through FDI have expanded their business operations to a large extent.
INTERNATIONAL BUSINESS, DIVERSIFICATION, COUNTRY SELECTION AND EVALUATION, STEPS REQUIRED IN COUNTRY SELECTION AND EVALUATION, TYPES OF RISKS, COUNTRY COMPARISON TOOLS, NON COMPARATIVE DECISION MAKING, CASE STUDY of Ford
international trade theory
,
why is free trade beneficial
,
what role does government have in trade
,
what is mercantilism
,
what is the heckscher-ohlin theory
,
how does the theory of absolute advantage work
,
is a current account deficit bad
,
what is smith’s theory of absolute advantage
,
what is the balance of payments
,
what is new trade theory
,
what is ricardo’s theory of comparative advantage
> To define globalization and international business and show how they affect each other
> To understand why companies engage in international business and why international business growth has accelerated
> To discuss globalization’s future and the major criticisms of globalization
> To become familiar with different ways in which a company can accomplish its global objectives
> To apply social science disciplines to understanding the differences between international and domestic business
> To define globalization and international business and show how they affect each other
Foreign Direct Investment (Theories of FDI)Mamta Bhola
the opening up of the national frontiers has led to a tremendous cross border movement of capital. This has led to a large number of MNC's that have invested foreign capital in a number of countries. MNC's through FDI have expanded their business operations to a large extent.
INTERNATIONAL BUSINESS, DIVERSIFICATION, COUNTRY SELECTION AND EVALUATION, STEPS REQUIRED IN COUNTRY SELECTION AND EVALUATION, TYPES OF RISKS, COUNTRY COMPARISON TOOLS, NON COMPARATIVE DECISION MAKING, CASE STUDY of Ford
Terrorism Risk Captives - Comments to TreasuryJasonSchupp1
Every two years U.S. Treasury reports to Congress on the effectiveness of the Terrorism Risk Insurance Program. Treasury’s 2018 report revealed the outsized role captive insurance companies play in the program. For example, we learned:
• At least 500 captives participate in the program, although “Treasury does not have a comprehensive U.S. captive count”;
• Captives account for 23% of the all US terrorism premiums earned despite representing only 4% of the total commercial property and casualty insurance market; and
• Captives would receive about 95% of all payouts from the federal backstop under a hypothetical truck bomb attack in Chicago.
As explained in the attached comments to Treasury, the 2020 Report should build on this analysis to quantify the serious risks terrorism insurance captives present to:
• The integrity of the program;
• The assets of regular policyholders such as churches, charities, schools and small businesses that cannot afford to set up their own insurance companies; and
• Funding for the care of victims of NBCR terrorist attacks and the families left behind.
The attached also proposes a public listing of participating insurers with basic information so Congress and those put at risk can better understand these risks and hold the corporations creating them to account.
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