1 What are the different methods a company can use to obtain and/or develop political risk

assessment information? what do you think are the strengths and weakness of each?

The risks that company face and identify it and develop a assessment that can help them.

1. Government stability.
2. Information access and transparency.
3. Terrorism, violence and crime.
4. Regulatory and policy environment.
5. Workforce freedom and mobility.
6. Government assistance programs for businesses.

Strength and Weakness:

In general, there are two types of political risk: macro risk and micro risk. Macro risk refers to
adverse actions that will affect all foreign firms, such as expropriation or insurrection, whereas micro
risk refers to adverse actions that will only affect a certain industrial sector or business, such as
corruption and prejudicial actions against companies from foreign countries.

All in all, regardless of the type of political risk that a multinational corporation faces, companies
usually will end up losing a lot of money if they are unprepared for these adverse situations.