Assessment Of Political Risk In Cross-National Investment And Solutions

Political risk is one of the main risks in cross-national investment of Chineseenterprises. With the variability of the situation of world economy and politics and thefurther operation of 'Go abroad' strategy for Chinese enterprises, the assessment ofpolitical risk of the investment climate of host country accurately becomes moreimportant. The former researches on political risk often focus on the conceptualdescription of the types of political risk, without case study of the enterprise and theassessment of political risk. Therefore the object of this thesis is to give suggestions toChinese enterprises to avoid political risk through the introduction of the assessmentsystem of political risks.Firstly the author summarized the concept, types, ways of political risk and theformer experience of Chinese enterprises. Then on the basis of analysis, the authortried to find the reasons of political risk encountered by Chinese enterprises with theacquisition case of CNOOC.The author started my research from the factors of assessment to political risk.There are two main kinds of approaches to assessment of political risk. One issubjective approach and the other is objective approach. Finally the author gave someconstructive suggestion on avoiding the political risk in various stages ofcross-national investment of Chinese enterprises.In the author's opinion, it is meaningful to improve the core competition abilityof enterprises and Chinese economy by avoiding political risk.