Political Risk Evaluation Of Chinese Enterprises In Overseas Investment And Coping Strategies

Economic globalization not only created plenty of opportunities and challenges tothe enterprise overseas investment of China. As the Chinese government implementedthe "going out" strategic, the enterprise overseas investment of China increasedsignificantly. With the new time coming, the political risk becomes more and moreoutstanding. The unpredictability and uncontrollability of the political risk bringsirreversible destruction to the enterprise, even leads to the failure to the wholeinvestment projects. The cases of the failure of our overseas investment are quiteoften, so the significance of political risk studies cannot be ignored.The purpose of this thesis is to seek for a suitable political risk assessment toolwhich fits to China’s national conditions. The methods of my research are to referenceto the some foreign authoritative political risk models and improve Italy’s politicalrisk model (Political Risk: A conceptual scheme). We can safely come to theconclusion that the new political risk assessment model improved by this thesis ismore suitable for China and more accurate than Italy’s political risk model (PoliticalRisk: A conceptual scheme) when it is used to measure the risk of enterprise overseasinvestment of China.Research shows that in low ability government country, our government andenterprises should use international support, international treaties and law to restrainthe host country, and maintain good relationship with the stakeholder groups. In thecomplex social environment country, our government should strengthen the publicrelations, such as the media public relations and crisis public relations activities.Enterprise should be do more public welfare activities in the host country, establishinga good image in people heart. In the economic environment is not so free country,Chinese government and enterprises should be signed with the host countrygovernment investment protection agreement, and enterprises should choose flexibleway of investment, optimize the equity structure.I hope this thesis could help our country enterprise overseas investment establish apolitical risk assessment model, to some extent, it can offer a reference for futureresearch on political risk.