Managing Political Risk Assessment: Strategic Response to Environmental Change

The accurate assessment of political risk can make the difference between success and failure for a multinational corporation, and Stephen J. Kobrin's book "Managing Political Risk Assessment" describes and analyzes the techniques of political risk assessment employed by U.S. multinationals. His analysis draws on organizational theory, economics, political science, and international relations and reveals that those charged with political risk assessment have often not been fully integrated into the core of the managerial process, information from subsidiaries is often biased, and the flow of data is poorly controlled.

Format: Hardback
Length: 238 pages
Publication date: 25 March 2022
Publisher: University of California Press

The accurate assessment of political risk holds immense significance for multinational corporations as they navigate the complex terrain of operating in diverse environments worldwide. It is a crucial factor that can make the difference between success and failure, as these organizations must align their corporate objectives with the ever-changing political landscapes. While environmental or political risk assessment has become an explicit function in many firms and is inherent in all foreign investment, the uncertainties of foreign political environments continue to pose critical challenges for managers.

In his book, Managing Political Risk Assessment, Stephen J. Kobrin delves into the techniques employed by U.S. multinationals to assess political risk. Drawing from organizational theory, economics, political science, and international relations, Kobrin's analysis provides a comprehensive understanding of the challenges faced by those responsible for political risk assessment. The study reveals that those charged with political risk assessment often lack full integration into the core of the managerial process, resulting in biased information from subsidiaries and inadequate control over the flow of data. Consequently, virtually all firms encounter difficulties in using environmental assessment in planning and making decisions.

Kobrin persuasively argues that the thorough integration of the assessment function into the managerial process is a necessary step, as the need for political risk assessment intensifies with the increased interaction between international business and its social and political surroundings. This integration would enable organizations to make informed decisions based on a comprehensive understanding of the political landscape, mitigating potential risks and maximizing opportunities.

Political scientists, institutional economists, managers, and students and teachers of international business will all benefit from Kobrin's excellent synthesis of knowledge in this area of scholarly interest. This title is part of UC Press's Voices Revived program, which commemorates University of California Press's mission to seek out and cultivate the brightest minds and give them voice, reac.

Weight: 499g
Dimension: 234 x 156 x 18 (mm)
ISBN-13: 9780520356726