State about the country analysis and political risk, Financial Management

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Country analysis and political risk

Country analysis could use tools for example PEST factors in order to strategically analyse countries.

Political risk

 

Political risk is the risk that government or political action will affect the value and position of an organisation. Financial or other risk that a nations government changes its policies and procedures for example potential loss arising from a change in government policy regarding trade barriers such as foreign exchange controls, import quotas or tariffs.

Public policy of government can make and break companies and markets, because of its opaqueness and intangible nature it is frequently ignored ormisunderstoodby organisations.

 


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