POLITICAL RISK IN INTERNATIONAL CAPITAL BUDGETING

Abstract

One of the practical difficulties of international capital budgeting is how to incorporate political risk into the decision process. This paper examines the nature of political risk and the use of analytical techniques in the evaluation of such risk. Questionnaire and interview findings from a survey of UK multinational companies suggest that corporate practice differs from the theoretical ‘textbook’ treatment of this type of risk.

Citation

Goddard, S. (1990), "POLITICAL RISK IN INTERNATIONAL CAPITAL BUDGETING", Managerial Finance, Vol. 16 No. 2, pp. 7-12. https://doi.org/10.1108/eb013639