This chapter examines the interrelationships among political, legal, and business decisions. The discussion will focus on how the political climate affects the investment climate. Among political topics covered are forms of government, indicators of political instability, and political risks. The chapter ends with the investigation of strategies used to manage political risks. | Chapter 4 Political Environment Chapter Outline Multiplicity of Political Environments Types of Government: Political Systems Types of Government: Economic Systems Political Risks Privatization Chapter Outline Indicators of Political Instability Analysis of Political Risk or Country Risk Management of Political Risk Measures to Minimize Political Risk Political Insurance Types of Governments: Political Systems Absolutist (closed system) - dictatorships - absolute monarchies - communist countries Democracy (open system) parliamentary systems multiparty systems Types of Governments: Economic Systems government interference vs. market orientation public ownership vs. private ownership Communism Socialism Capitalism - Managerial Capitalism - Personal Capitalism - Cooperative Capitalism - Frontier Capitalism Variations of Capitalism State-guided capitalism Oligarchic capitalism Big-firm capitalism Entrepreneurial capitalism Responsible Global Capitalism Karma capitalism Political Risks Confiscation Expropriation Nationalization Domestication and Privatization Creeping Expropriation Terrorism and Kidnapping Measures to Minimize Political Risks Stimulation of the Local Economy Employment of Nationals Sharing Ownership Being Civic Minded Political Neutrality Measures to Minimize Political Risks Behind-the-Scenes Lobby Observation of Political Mood and Reduction of Exposure Political Insurance Other . | Chapter 4 Political Environment Chapter Outline Multiplicity of Political Environments Types of Government: Political Systems Types of Government: Economic Systems Political Risks Privatization Chapter Outline Indicators of Political Instability Analysis of Political Risk or Country Risk Management of Political Risk Measures to Minimize Political Risk Political Insurance Types of Governments: Political Systems Absolutist (closed system) - dictatorships - absolute monarchies - communist countries Democracy (open system) parliamentary systems multiparty systems Types of Governments: Economic Systems government interference vs. market orientation public ownership vs. private ownership Communism Socialism Capitalism - Managerial Capitalism - Personal Capitalism - Cooperative Capitalism - Frontier Capitalism Variations of Capitalism State-guided capitalism Oligarchic capitalism Big-firm capitalism Entrepreneurial capitalism Responsible Global Capitalism Karma capitalism Political Risks Confiscation Expropriation Nationalization Domestication and Privatization Creeping Expropriation Terrorism and Kidnapping Measures to Minimize Political Risks Stimulation of the Local Economy Employment of Nationals Sharing Ownership Being Civic Minded Political Neutrality Measures to Minimize Political Risks Behind-the-Scenes Lobby Observation of Political Mood and Reduction of Exposure Political Insurance Other Measures
