Managing International Risk 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
Perspective: Managing country risk for a manufacturing corporation
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
Any analysis of the management of risk, be it personal risk or business risk, fire, flood, famine – or even country risk – can be of only academic interest without affirmative answers to the following questions:
Will such analysis allow predictions concerning the future?
Will such predictions be sufficiently credible, accurate, and time specific (and different from conventional wisdom) to stimulate decision makers to take actions to avoid these risks?
Are there any such actions that can be taken in a cost-efficient manner?
From the point of view of a direct foreign investor, operating a manufacturing/marketing business in a market, it can be advanced, as at least one credible thesis that:
Country risk is not significantly different in kind from any other home market business risk.
Meaningful country-risk-oriented decisions can only be made at time of initial investment or subsequent major investment or divestment decision points.
Such investors probably operate with far fewer degrees of operational freedom to minimize country risk (again, once they are fully operational) than is generally supposed.
Against this background, it would not be surprising if at least some of us in the corporate world were tempted to answer in a generally reserved vein to the foregoing three questions, when they are posed in connection with country risk analyses and the management of such risk.
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- Information
- Managing International RiskEssays Commissioned in Honor of the Centenary of the Wharton School, University of Pennsylvania, pp. 184 - 190Publisher: Cambridge University PressPrint publication year: 1983
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