and cementing good public relationships. 5. It should train its executives to act appropriately in the foreign environment. STRATEGIES TO LESSEN POLITICAL RISKS MNCs can use other strategies to minimize political risks and vulnerability. They are: - Joint ventures Expanding the investment base Marketing and distribution Licensing Planned domestication Political payoffs GOVERNMENT ENCOURAGEMENT OF GLOBAL BUSINESS FOREIGN GOVERNMENT ENCOURAGEMENT Governments also encourage foreign investment. The most important reason to encourage investment is to accelerate the development of an economy. An increasing number of countries are encouraging investments with specific guidelines toward economic goals. MNCs may be expected to create local employment, transfer technology, generate export sales, stimulate growth and development of the local industry. US GOVENRMENT ENCOURAEMENT The US government is motivated for economic as well as political reasons to encourage American firms to seek opportunities in the countries worldwide. It seeks to create a favorable climate for overseas business by providing the assistance by providing the assistance that helps minimize some of the troublesome politically motivated financial risks of doing business abroad. ___________________...
