International political analysis and international business: a new model

Article Abstract:

Political risk analysis has revolved in the past around macro-political risk events that include civil war, coups d'etat and other forms of political instability. An new approach to risk assessment covers other factors, such as changes in economic regulations, repatriation policies, corporate taxes and currency devaluation. These are called micro-policy risk events because they may not seem to be as important as developments in political instability. In the long run, they are extremely important because they impact foreign investment decisions even more than political risk factors.

Author: Tarzi, Shah M.
International aspects

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Financial globalization and national macroeconomic policies: managerial challenges to the the nation-state

Article Abstract:

The interplay between global financial markets and national currency, budget and monetary policies is analyzed. Cases examined include UK's European Exchange Rate Mechanism episode of 1992, Mexico's peso crisis of 1994 and the Asian currency crisis of 1997. It is found that when 'policy misalignments' exist, that is when governments implement monetary policies that have the unplanned effect of weakening the soundness of the economy and the financial system, markets act as a disciplinary mechanism by sanctioning policy mistakes.

Author: Tarzi, Shah M.
Analysis, Financial markets, Monetary policy

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Country risk analysis, international banking and developing countries

Article Abstract:

The Asian financial crisisis one factor which has led to a new interest in country risk assessment by private banks. Latin American central banks are also tapping international markets, and eastern European countries have joined other emerging markets. A typology of country risk can be used to supplement other methods of assessing risk. Monetary and fiscal policy may affect risk levels and rescheduling of debt, moratoria and other risks are related to economic policy.

Author: Tarzi, Shah M.
Economic aspects, Developing countries, International relations, Industrialized countries, External debts, International banking

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Subjects list: Risk assessment
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