Gwybodaeth Modiwlau

Topic 1: International Business and the New Insecurity

The international business environment has seen a dramatic `return of the state? with government intervention and activity increasingly prevalent. This relates not merely to the financial crisis that began in 2007, but to differing conceptions of the role of the state in a world of increased competition for resources. This opening session explores some of the roots of the `backlash? to globalisation. Why is the United States now so ambivalent about liberalisation in the world economy? Do stable authoritarian states with developing economies challenge our traditional understanding about the evolution of the state-economy relationship? How should firms respond to the increased politicisation of the international economy?


Topic 2: Introduction to Political Risk

What is `political risk?? How does it differ from other types of risk that firms face in their international operations? What are the sources of political risk, what forms does it take and what tools are available to manage political risk? What are the origins of the political risk `industry? and how has it evolved? Finally, what is the role of political risk at the nexus of foreign investment and economic development?

Topic 3: Developing a Political Risk Assessment

How do firms and governments undertake political risk analysis? This section of the course looks at the `how? of political risk analysis and links it to the market strategy of the firm. It will also look at the role of government agencies in the political risk market. Many states have extensive export-credit operations that rely on political risk assessments to inform the decision to support a specific export.

Topic 4: Non-Market Strategy

Firms are used to crafting and implementing market strategies designed to gain competitive advantage in the marketplace. However, success can often depend on how the firm uses the non-market environment (government, civil society) to its advantage. This session explores the concept of non-market strategy as a way to integrate political risk analysis into strategy development. We consider how corporate political activity (CPA) is used to implement non-market strategy. What are the components of non-market strategy? How does political risk inform the development of the non-market strategy?


Topic 5: International Corporate Political Activity: International Lobbying

Most studies of lobbying concentrate on the European Union and ? especially ? the United States. In both those economies there are well established patterns of corporate political activity. This session begins with an exploration of the EU and US lobbying system and seeks to understand the differences between the two. It then moves to consider how corporate political activity evolves in emerging markets. How does CPA differ between Europe, America and emerging economies? To what extent do non-market strategies `travel? between established and emerging markets?

We will explore the various sources of political risk companies face in their global operations and survey the tools at their disposal to minimise, mitigate and manage such risk. The ongoing process of globalisation has dramatically transformed and given new emphasis to political risk management. Several decades ago, large capital investments ? for oil exploration or infrastructure projects ? in often unstable political environments prompted companies to think systematically about how to manage their exposure to `non-commercial risk? such as nationalisation, currency inconvertibility, or war. Since then, a sophisticated political risk management industry has sprung up, including some of the world'r largest insurance providers, rating agencies and leading consulting firms.

As companies have learned to deal with macro-risk, other sources of political risk ? including sudden policy change, activist pressure and global terrorism ? are posing new challenges that require new tools and strategies. Political risk is often associated with emerging markets; yet we are witnessing increased political risk in developed economies. Successful companies have developed comprehensive nonmarket strategies to manage political risk, engage in corporate social responsibility to enhance their legitimacy and employ scenario planning to prepare for an uncertain future.

We will treat the issue of political risk management comprehensively, considering it from the perspective of investing firms, financial intermediaries, local governments and international organisations. Besides studying the management of political risk at the company level, we will also analyse the links between political risk, foreign direct investment and economic development at the national level.