Topic: Managing Political Risk, Government Relations, and Alliances
There is a wide range of risks that emanate from the political environment in which multinational companies operate, and firms can employ an equally diverse set of strategies to mitigate those risks and improve their relations with governments. We now know that political risks are the likelihood that a foreign investment of a business will be constrained by a host government’s policies.
Instructions: In 600 words, answer the two related questions based on the topic and be sure to provide credible/academic resources.
The case is a fictional expanision consideration by the company E & J Gallo Winery into Hong Kong.
1. Identify and describe the types of political risks E&J Gallo Winery would face when entering the Hong Kong international market.
2. What risk management strategies might E&J Gallo Winery use in Hong Kong, which it plans to expand?