Political Risk: A Structural Analysis
Advances in International Marketing
This article argues that as a society restructures its polity and economy to evolve and better perform societal functions, political risk arises. Thus political risk is unavoidable since all societies must change and evolve or become extinct. The societies that have the best evolutionary potential, and thus are the most attractive for foreign business expansion, arc those that have the proper ha lance between openness and closedness and stability and flexibility. Examining the phenomenon of political risk as an evolving process within 11 social system allows us to synthesize the existing literature on the subject, develop conceptual framework, suggest new research directions in the area of political risk and foreign business. and recommend possible strategic orientations for managing political risk in foreign business.