Political Stability for a Business in Libya
University of Libya
9/4/2012
Business administration
Business Environment Assignment
Tutor: Mr.Firas Adwek Student: Awab Dali Assignment: Political stability In Libya
Introduction:
At the moment, there is a large number of multinational firms that don’t fully understand or comprehend how to deal with the high political risk in Libya, This is significant since political risk can have a substantial affect on firms, as current events are showing in Libya, Before this paper discusses this, firstly you the reader need to understand what exactly is political risk, in essence political risk is defined as the risk of losing money as a result of unstable governments or regulatory environments, acts of terrorism, wars, and military coups are all extreme examples of political risk, expropriation of resources by the government, or merely the threat can also have a disturbing effect on share prices as seen from the events in Libya, Syria, Egypt, Bahrain and Tunisia.
Libya has over the past few months witnessed unprecedented civil disturbances, along with mass demonstrations and disruptions to businesses, however, these recent political problems and uncertainty around the old and new incoming governments has had implications for company profits, The next part will unravel political risk and aid to develop some strategic options for companies to deal with future political risk.
Main body:
To better understand all that’s happening, this paper must raise the question: what caused this political risk?
In the Middle East and North Africa (MENA) region, the main grounds behind the political unrest were caused by the increased toxic mix of high unemployment, high inflation, indecisiveness in fuel prices and long standing corrupt and brutal regimes, But in Libya, it was this extreme corruption that coexisted with the
9/4/2012
Business administration
Business Environment Assignment
Tutor: Mr.Firas Adwek Student: Awab Dali Assignment: Political stability In Libya
Introduction:
At the moment, there is a large number of multinational firms that don’t fully understand or comprehend how to deal with the high political risk in Libya, This is significant since political risk can have a substantial affect on firms, as current events are showing in Libya, Before this paper discusses this, firstly you the reader need to understand what exactly is political risk, in essence political risk is defined as the risk of losing money as a result of unstable governments or regulatory environments, acts of terrorism, wars, and military coups are all extreme examples of political risk, expropriation of resources by the government, or merely the threat can also have a disturbing effect on share prices as seen from the events in Libya, Syria, Egypt, Bahrain and Tunisia.
Libya has over the past few months witnessed unprecedented civil disturbances, along with mass demonstrations and disruptions to businesses, however, these recent political problems and uncertainty around the old and new incoming governments has had implications for company profits, The next part will unravel political risk and aid to develop some strategic options for companies to deal with future political risk.
Main body:
To better understand all that’s happening, this paper must raise the question: what caused this political risk?
In the Middle East and North Africa (MENA) region, the main grounds behind the political unrest were caused by the increased toxic mix of high unemployment, high inflation, indecisiveness in fuel prices and long standing corrupt and brutal regimes, But in Libya, it was this extreme corruption that coexisted with the
References: www.ccun.org/Opinion Editorials/2011/August/29 o/Can Libya Reap the Fruits of the Arab Spring By Yamin Zakaria.htm dawn.com/2011/10/21/china-urges-inclusive-political-process-in-libya/ country.eiu.com/article.aspx?articleid=1968912781&Country=Libya&topic=Summary&subtopic=Political+structure&subsubtopic=Political+structure www.menas.co.uk/politics_and_security/libya/ http://www.guardian.co.uk/commentisfree/2011/sep/01/libya-political-landscape http://libya360.wordpress.com/2011/03/07/direct-democracy-understanding-libyas-political-system/ www.guardian.co.uk/commentisfree/2011/sep/01/libya-political-landscape