Political Risk and the Internationalization of Firms: An Empirical Study of Canadian-Based Export and FDI Firms

Canadian Journal of Administrative Sciences, Volume 24, Issue 3, first published online: August 29, 2007

University of Alberta School of Business Research Paper No. 2013-363

Posted: 5 Jun 2013

See all articles by James Agarwal

James Agarwal

University of Regina

Dorothee Feils

University of Alberta - Department of Marketing, Business Economics & Law

Date Written: 2006

Abstract

Political risk analysis primarily receives attention for foreign direct investment (FDI) but only rarely for exporting. We examine how exporters and foreign direct investors evaluate the relative importance of political risk factors. We provide a rationale for exporters to evaluate political risk factors for FDI and for foreign direct investors to evaluate political risk factors for exporting. Survey data were collected from Canadian exporters and foreign direct investors and capture the distinctive nature of salient factors for exporting and FDI. We offer unique insights on the evolutionary character of political risk that are of practical value for both exporting and FDI.

Suggested Citation

Agarwal, James and Feils, Dorothee, Political Risk and the Internationalization of Firms: An Empirical Study of Canadian-Based Export and FDI Firms (2006). Canadian Journal of Administrative Sciences, Volume 24, Issue 3, first published online: August 29, 2007, University of Alberta School of Business Research Paper No. 2013-363, Available at SSRN: https://ssrn.com/abstract=2274344

James Agarwal (Contact Author)

University of Regina ( email )

3737 Wascana Parkway
Faculty of Administration
Regina, Saskatchewan S4S OA2
Canada
(306) 585-4735 (Phone)
(306) 585-4805 (Fax)

Dorothee Feils

University of Alberta - Department of Marketing, Business Economics & Law ( email )

Edmonton, Alberta T6G 2R6
Canada

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