The place of Political Risk Insurance in the political risk management strategy of multinational corporations

Violeta Iftinchi and Gheorghe Hurduzeu

Romanian Economic Journal, 2016, vol. 19, issue 60, 201-212

Abstract: Confronted with a variety of political risks that affect their international activities, multinational corporations (MNCs) can use Political Risk Insurance (PRI) as a method to mitigate some of those risks. The aim of this article is to present the main characteristics of the PRI policies and participants, to highlight its benefits and to put forward three limitations that prevent MNCs in using PRI in their political risk management strategy (fluctuating capacity on the market, high premium rates and small compensation value). The recent trend in incorporating corporate social responsibility requirements as a pre-condition for providing PRI can contribute to lowering PRI premium rates.

Keywords: political risk insurance; risk management; multinational corporations (search for similar items in EconPapers)
JEL-codes: F23 G22 G32 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.rejournal.eu/sites/rejournal.versatech. ... 5/3373/yiftinchi.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:rej:journl:v:19:y:2016:i:60:p:201-212

Access Statistics for this article

Romanian Economic Journal is currently edited by Ioan Popa, PhD

More articles in Romanian Economic Journal from Department of International Business and Economics from the Academy of Economic Studies Bucharest Contact information at EDIRC.
Bibliographic data for series maintained by Radu Lupu ().