TITLE

Towards An Understanding of Terrorism Risk in the MNE

AUTHOR(S)
Suder, Gabriele; Czinkota, Michael R.
PUB. DATE
September 2005
SOURCE
Multinational Business Review (St. Louis University);Fall2005, Vol. 13 Issue 3, p3
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
Based on a literature review of terrorism and global business literature, this paper addresses those conditions that may lead to new considerations about risk and its management at policy and the MNE (multinational enterprise) level. How do MNEs adapt to the 09/11 — type risk in strategic management that shapes choices made for internationalization and for international business operations? It is observed that MNEs increasingly enlarge the notion of political risk. We suggest the development of a strategic risk assessment that incorporates terrorism which in its threat, event and aftermath does not remain local or national, but influences investment, location, logistics, supply-chain and other performance- linked decisions of the international value chain through an enlarged risk-return evaluation. Using the OLI- paradigm as a typology, we extend Dunning's work by incorporating the terrorism dimension. We do so mainly through the analysis and distinction of the most vulnerable links in firms' value chain in which adjustments need to be made in the face of terrorism threat, act and aftermath. This paper attempts to improve the understanding of international management in an era of global risk and uncertainty.
ACCESSION #
25695199

 

Related Articles

  • Global: Aon Study Finds Elevated Risk in Half of Top-50 Largest Economies.  // MiddleEast Insurance Review;Feb2008, p14 

    The article reports on the result of the study by Aon Trade Credit Global regarding global risk management. It shows that multinational organisations in 25 of the world's 50 largest economies face elevated political and economic risks, including business interruption caused by war, terror...

  • Managing Political Risk in Cross-national Investment: A Stakeholder View. Yongqiang Gao // Singapore Management Review;2009 1st Half, Vol. 31 Issue 1, p99 

    Political risk originates from the negative actions of social stakeholders of multinational enterprises (MNEs) in a given host country, such as the host government and other non-governmental actors. Further, there are various underlying reasons why the stakeholders take negative actions against...

  • The Role of Corporate Risk Managers in Country Risk Management: A Survey of Jordanian Multinational Enterprises. Al Khattab, Adel // International Journal of Business & Management;Jan2011, Vol. 6 Issue 1, p274 

    The recent growth in diplomatic, civil and military conflicts presents evolving challenges for international business. These risks create new sources of country risk. Country risk, in this sense, is commonly associated with the risk faced by enterprises in developed countries while conducting...

  • Country risk. Boczko, Anthony // Financial Management;Feb2005, p25 

    Provides information on how to minimize country risk for multinational companies. Components and nature of country risk; Available sophisticated rating models that attempt to provide a structured framework to assess potential country risk; Definition of micro risk assessment; List of...

  • THE POLITICAL RISKS OF DOING BUSINESS OVERSEAS. Braun, Kerstin // Risk Management (00355593);Jun2012, Vol. 59 Issue 5, p12 

    The article offers information on the political risks associated with doing overseas business. The author mentions that despite the opportunities of opening American companies overseas, firms need to protect their revenue streams and properties by means of political risk insurance. Moreover, he...

  • L'impact du risque pays perçu sur le contrôle des filiales à l'étranger. Une étude qualitative sur le cas des multinationales françaises. Abdellatif, Mahamat // Revue Management et Avenir;jun2013, Issue 62, p14 

    This research investigates the role of political risk and cultural distance on mechanisms to keep control over subsidiaries abroad. We realize a qualitative approach by conducting a series of extensive interviews with 12 French multinationals on two periods: from July 2006 to January 2007, then...

  • The Definition and Assessment of Political Risk in International Business: A Review of the Literature. Fitzpatrick, Mark // Academy of Management Review;Apr1983, Vol. 8 Issue 2, p249 

    The evolution of a body of knowledge concerned with the definition and assessment of political risk has been uncoordinated, due to the absence of a consensus regarding the conceptual framework on which to develop. In this paper, previous work is drawn together as a first step in establishing...

  • NEW GEOPOLITICS spotlights POLITICAL RISK MANAGEMENT. LEVINSOHN, ALAN // Strategic Finance;Jan2002, Vol. 83 Issue 7, p38 

    The article discusses managing the geopolitical risks that attend operating in overseas markets. In some nations the risks from terrorism, corruption, or civil unrest cannot be ignored. Tom Copeland with the Monitor Group recommends that firms borrow in the local currency. Doing so provides a...

  • Measuring Political and Economic Risk. Price, Ted // Franchising World;Dec2005, Vol. 37 Issue 12, p58 

    The article discusses concerns on political and economic risks in international commerce. Concepts of political risk are discussed and its impact on international trade. It is also emphasized that franchisors should understand the effects of taxation between countries. On the other hand,...

Share

Read the Article

Courtesy of VIRGINIA BEACH PUBLIC LIBRARY AND SYSTEM

Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics