Analysis Of Political Risk In Cross-National Operation Of Chinese Enterprises

Political risk is one of the main risk of the overseas business of China, also is the first of the risk faced by the overseas business of China. But in fact, due to the lack of mature theoretical guidance system, Chinese enterprises still can not effectively deal with the political risk in the face of transnational business. Therefore, the main purpose of this paper is making the Chinese overseas enterprises can do the best for political risk prevention, avoidance and remedial work, through the discrimination of concept and type and analysis evaluation system.Firstly, the author begins from the theory and practice of overseas Chinese business, introducing the theory of FDI and the strategy of "going out". Then the author makes a description of the status and distribution of overseas assets of Chinese enterprises. And it paves the way for the analysis of political risk and the reasons of causing risk below.The author builds a new index system for evaluating the political risk. The new model make the Geopolitical risk the international factor of political risk in a creative way, making the resource conflicts, territorial disputes, ethnic and religious conflicts between states and "China threat theory" be the factors of the Geopolitical risk. And then the author calculates the political risk of all the countries in the world using the data of the WGI and HER. After that the author makes a correlation analysis to the result of original model.Finally, Based on the qualitative and quantitative analysis of political risk, the author puts forward the political risk management recommendations from the government and enterprise.