French President Mitterrand's decision to nationalize companies in targeted industries, President Reagan's recent ban on the sale of U.S.‐licensed pipeline equipment to Russia and losses resulting from the Iranian revolution make clear the importance of understanding the linkage between business decisions and political events. Yet many executives are unsure of how to manage a situation that not only encourages good government relations but also recognizes possible consequences of association with a controversial regime should the government be overthrown.
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