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Book contents
- Frontmatter
- Contents
- List of contributors
- Acknowledgments
- Introduction and overview
- 1 Managing risks to the international economic system
- Perspective: Political threats to the international economic system
- Perspective: The crisis of exogeneity, or our reduced ability to deal with risk
- 2 Country risk: economic aspects
- 3 Political risk: analysis, process, and purpose
- 4 Country risk: social and cultural aspects
- Perspective: The risks of lending to developing countries
- Perspective: Country risk, a banker's view
- Perspective: Managing country risk for a manufacturing corporation
- 5 Organizational and institutional responses to international risk
- Perspective: Organizational strategies for coping with country risk
- 6 Insuring against country risks: descriptive and prescriptive aspects
- Perspective: Country risk insurance, an insurer's view
- Index
Introduction and overview
Published online by Cambridge University Press: 07 May 2010
- Frontmatter
- Contents
- List of contributors
- Acknowledgments
- Introduction and overview
- 1 Managing risks to the international economic system
- Perspective: Political threats to the international economic system
- Perspective: The crisis of exogeneity, or our reduced ability to deal with risk
- 2 Country risk: economic aspects
- 3 Political risk: analysis, process, and purpose
- 4 Country risk: social and cultural aspects
- Perspective: The risks of lending to developing countries
- Perspective: Country risk, a banker's view
- Perspective: Managing country risk for a manufacturing corporation
- 5 Organizational and institutional responses to international risk
- Perspective: Organizational strategies for coping with country risk
- 6 Insuring against country risks: descriptive and prescriptive aspects
- Perspective: Country risk insurance, an insurer's view
- Index
Summary
The importance of managing international risks has grown as the volume of international activity has increased. Over the past two decades, international transactions have expanded more rapidly than domestic transactions in almost every country. Profits, opportunities for growth, and, indeed, corporate survival have increasingly come to depend on how effectively managers cope with international uncertainties. Yet, relative to the earlier postwar period, the international environment seems to have become less predictable. Over the last decade, exchange rate volatility has increased as have divergences in national rates of growth and inflation. Moreover, economic, social, and political changes, such as the Iranian revolution and the manipulation of oil prices by the Organization of Petroleum Exporting Countries, have reshaped the international environment in dramatic and unexpected ways. The importance of managing international risks has grown even as our ability to anticipate such risks has seemed to diminish.
Inadequate information impedes the effectiveness of all decision makers, but because knowledge about foreign events is especially limited, costly, and uncertain, international managers are particularly hampered. Moreover, managers of international enterprises must cope not only with the hazards that jeopardize the success of ordinary domestic transactions but also with additional perils that do not affect purely domestic transactions.
- Type
- Chapter
- Information
- Managing International RiskEssays Commissioned in Honor of the Centenary of the Wharton School, University of Pennsylvania, pp. 1 - 22Publisher: Cambridge University PressPrint publication year: 1983