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
Posted: 5 Jun 2013
Date Written: 2006
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.
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