Chery International Expansion
POLITICAL
The political system is a set of formal institutions that continue a government. A political system is a system of politics and government. There are several definitions of “Political System” According from book International Business an Introduction, A political system is one that ensure maintaining of order and sanity in the society and at the same time makes it possible for some other institutions to also have their grievances and complaints put across in the course of social existence.
So based on I understand Cherry company most has existing exposure in foreign markets, or if it is considering making major investments in infrastructure or operations abroad, it needs timely, accurate, and objective assessments of the political environment (Focus on Politic in Investment) doing make a business. Economic analysis fails to tell the whole story, particularly in countries where statistical data is either difficult to collect or is manipulated to serve policy interests. It is simply too risky to base global investment decisions solely on economic data without understanding the political context for a decision.
With political risk analysis, a company can make better and more timely decisions about international operations, protect existing global investments, improve business performance, and exit unstable markets. It can anticipate the business-risk implications of political change as well as identify both opportunities and risks stemming from political shifts and instability. And it can take steps to mitigate risks, protect against unwanted surprises, and improve measurement using risk adjusted evaluation of international performance.
To initiate the assessment process, management should conduct a baseline assessment of the political risk events affecting business strategy and objectives related to operational efficiency and effectiveness, compliance, and reliability of reporting. This evaluation should include an assessment of the events emanating
The political system is a set of formal institutions that continue a government. A political system is a system of politics and government. There are several definitions of “Political System” According from book International Business an Introduction, A political system is one that ensure maintaining of order and sanity in the society and at the same time makes it possible for some other institutions to also have their grievances and complaints put across in the course of social existence.
So based on I understand Cherry company most has existing exposure in foreign markets, or if it is considering making major investments in infrastructure or operations abroad, it needs timely, accurate, and objective assessments of the political environment (Focus on Politic in Investment) doing make a business. Economic analysis fails to tell the whole story, particularly in countries where statistical data is either difficult to collect or is manipulated to serve policy interests. It is simply too risky to base global investment decisions solely on economic data without understanding the political context for a decision.
With political risk analysis, a company can make better and more timely decisions about international operations, protect existing global investments, improve business performance, and exit unstable markets. It can anticipate the business-risk implications of political change as well as identify both opportunities and risks stemming from political shifts and instability. And it can take steps to mitigate risks, protect against unwanted surprises, and improve measurement using risk adjusted evaluation of international performance.
To initiate the assessment process, management should conduct a baseline assessment of the political risk events affecting business strategy and objectives related to operational efficiency and effectiveness, compliance, and reliability of reporting. This evaluation should include an assessment of the events emanating
References: Luthans. Fred . & Doh. J.P (2012). International Management: Culture, Strategy and Behavior, (8th ed.)