Alleviating Political Risk For Small U.S. Firms Investing Abroad: The Role of OPIC

Abstract

Many U.S. companies fear investing in Third World countries because of the political risk associated with such ventures. Recent events in Iran, Nicaragua, El Salvador, the Philippines and others have under scored such concerns, making U.S. businesses reluctant to participate in some of the fastest growing markets in the Third World. Such political risks need not be so worrisome ‐ many U.S. business people remain unaware of how the Overseas Private Investment Corporation can substantially reduce risks by insuring companies against such uncertainties. This paper discusses the ways through which OPIC can alleviate political risk and compares OPIC’s insurance with the programs of private political risk insurers.

Citation

Quraeshi, Z.A., Luqmani, M. and Yavas, U. (1990), "Alleviating Political Risk For Small U.S. Firms Investing Abroad: The Role of OPIC", American Journal of Business, Vol. 5 No. 2, pp. 31-40. https://doi.org/10.1108/19355181199000010