The Impact of Political Risks on Investment

The impact of
political risks on
Investment
Name of the Student

Introduction
• Multinational companies are required to spread their
operations in different countries.
• For this, there are various factors which are to be
considered.
• One of the most important factors is the political factor.
• The multinational companies need to consider the
political scenario and factors of developing countries
and developed both.
• The presentation throws light on the reason why MNCs
pay attention to such factors in the developing countries
and reasons why considering OCED`s political scenario
is important.

Political Risks
• Political risk can be defined as the risks that are
generally faced by the corporations, governments which
primarily refer to those political decisions or confusions
will have the capability to have an impact on the
profitability of the business or its success in the long run
(Lehkonen & Heimonen, 2015).
• These risks are generally related to Macroeconomic
factors and social policies. They also relate to political
instability problems

Multinational Companies
• A multinational company is an
organization which owns and controls the
manufacturing process in a country
which is other than the country it got
established in or its Home country (Cao
& Zhang, 2015).
• They seek opportunities and make
suitable investments.
• Examples: Samsung, Microsoft, Mc
Donald's and others