A Study On The Political Risk Management Of Chinese Enterprises' Multinational Operation

Through the study on the theories of multinational operation and political risk, this paper tries to combine the present international economic environment with the political environment, and analyze the new trend and form of political risk and therefore improves the classification of political risk. After evaluating the existing analysis frames of political risk, the author tries to form an evaluation and forecast frame of political risk and that reflects the new trend of political risk. Based upon the study on the new trend of political risk, the author analyzes the political risk suffered by the Chinese enterprises in the process of multinational operation, its characteristics and its cause. Finally, from the management perspective, the author puts forward the political risk management strategies and measures in the macro, medium and micro levels. In the macro-level, the businesses involved in multinational operation should integrate the building up of the national image and the improvement of the diplomatic emergency mechanism into the enterprises' political risk management system to reflect the nation's power backing the business. In the medium-level, the author tries to emphasize the research organizations should bring function into full play and provide the information for enterprises in all-round ways. Meanwhile, the insurance system of multinational operation should be improved to protect enterprises' overseas investment. In the micro-level, the corporation should hold the belief of a good crisis planning, handling in progress and remediation afterwards and put forward some measures with pertinence to manage political risk to help Chinese enterprises involved in multinational operation avoid or reduce the loss resulted from political risk.