Better safe than sorry: experiences of large US corporations in their global operation

Abstract

Data were collected on selected US corporations' perceptions of present and future political risk, political risk assessment variables, and assessment methods. The mean importance score of the political risk assessment variables and mean usefulness score of political risk assessment methods are presented in this study. Mean scores were also compared between the low and high-international involvement corporations. Most of the corporations reported higher perceived political risk in the future for most of the geographical regions. Political risk is expected to decline in China and Russia. The data provide suggestions for a quick and cost-effective political risk assessment process for all US corporations. The findings of this study help to understand the nature of political risk and status of political risk assessment process in large US corporations.