Page 62 - Demo

%u062c%u0645%u064a%u0639 %u0627%u0644%u062d%u0642%u0648%u0642 %u0645%u062d%u0641%u0648%u0638%u0629 %u0640 %u0627%u0625%u0644%u0639%u062a%u062f%u0627%u0621 %u0639%u0649%u0644 %u062d%u0642 %u0627%u0645%u0644%u0624%u0644%u0641 62 %u0628%u0627%u0644%u0646%u0633%u062e %u0623%u0648 %u0627%u0644%u0637%u0628%u0627%u0639%u0629 %u064a%u0639%u0631%u0636 %u0641%u0627%u0639%u0644%u0647 %u0644%u0644%u0645%u0633%u0627%u0626%u0644%u0629 %u0627%u0644%u0642%u0627%u0646%u0648%u0646%u064a%u0629Political Risk and FDIPolitical risks are among the most significant risks facing companies that directly invest in foreign countries. These risks include:25%uf06c Transfer RiskTransfer risk is associated with the possible restrictions the host country may put on the free flow of capital and profits between the home and host countries.%uf06c Control RiskControl risk relates to the uncertainty surrounding host country governments' ability to control investments and expropriate projects from the parent company.%uf06c Operational RiskOperational risk relates to uncertainty about policies that host countries may impose on the company's operations, which may affect the nature of the company's operations.How can the international company hedge against the political risk?International companies can hedge against political risks in host countries by:1. Geographically diversifying their investments across different countries (Simply put, don%u2019t put all your eggs in one basket).2. Relying on financing their direct investments through borrowing from the host country.3. Entering the host country through joint investments with local investors.25 --Eun, C. S., & Resnick, B. G. (2012). International financial, edition Six, McGraw Hill.