 Smaller may be beautiful but is it more risky? Assessing and managing political and economic risk in Costa RicaJennifer Oetzel International Business Review, 2005, vol. 14, issue 6, 765-790 Abstract: The purpose of this exploratory study is to examine how managers assess and manage political and economic risk once their company's foreign direct investment (FDI) is on the ground. Using a qualitative research design involving personal interviews with CEOs/top managers of foreign firms operating in Costa Rica, findings indicate that managers at the subsidiary level generally do not engage in political and economic risk assessment on an ongoing basis, nor do they coordinate risk assessment with MNE headquarters. Propositions are developed that suggest subsidiary size may be more important for determining a firm's political risk than the overall size of the corporation. Also, a firm's political risk may vary over time as the host country's policy priorities change, particularly the policies which favor some industries over others. Findings are expected to contribute to the literature on country risk and bargaining theories as well as to the research on the role of the subsidiary in FDI. Keywords: Country; risk; Foreign; direct; investment; Managing; risk; Bargaining; power; Qualitative; research; design; Developing; country (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:iburev:v:14:y:2005:i:6:p:765-790 Ordering information: This journal article can be ordered from Access Statistics for this article International Business Review is currently edited by P. Ghauri More articles in International Business Review from Elsevier |
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