Evaluation of political risk

Question

State the factors you would consider in the evaluation of the political risk related to the making of FDI in the foreign country?

Answer 1

Factors which are to be considered involves:

a) Political and Government system of the host country;
b) Track record of the political parties and their relative strength;
c) Degree of integration into the world system;
d) Ethnic and religious stability of the host country;
e) Regional security; and
f) Key economic indicators.