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Discuss measures a company might take to lessen its political vulnerability. the text suggests that violence is a politically motivated risk of international business. comment.

User Masche
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Final answer:

To lessen political vulnerability, a company can engage in lobbying, join business coalitions, and enter into international agreements. Protection against violence and other politically motivated risks can be managed through political risk insurance and regional diversification of operations.

Step-by-step explanation:

To lessen its political vulnerability, a company might take several measures. One strategy involves engaging in lobbying to influence legislative outcomes in favor of the business. Companies can also form or join business coalitions that can serve as a political counterweight to domestic special interests. This approach can help prevent protectionist measures that may hurt international trade. Entering into international agreements can also be beneficial, as they can protect against unilateral political actions that could undermine a company's operations.

In terms of violence being a politically motivated risk of international business, it is true that companies operating in politically unstable regions may face risks such as civil unrest, expropriation, or even terrorism. In light of these potential risks, businesses may choose to invest in insurance specifically designed to protect against political risks, or diversify their operations across different regions to spread the risk. By anticipating and planning for these risks, businesses can help ensure their continuity even in the face of low-probability, but high-impact, political events.

User Ademarizu
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