Political Risk: When Diversification Isn't Enough

September 2006
Financial Executive;Sep2006, Vol. 22 Issue 7, p54
Academic Journal
The article discusses the effects of global politics on international finance. It states that businesses expanding actively into developing countries must ensure that they have a formal political risk management policy in place. It mentions that because of globalization, even businesses with diverse holdings can't divest themselves of risk as their suppliers and affiliates can also be affected by global politics. It states that portfolio diversity can result in greater risk from terrorism and regime change.


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