Undertaking first foreign investment


Problem:

R. Douglas is the chief financial officer of a small U.S. firm thinking of undertaking its first foreign investment. The project is in a developing country, and he is concerned about political risk. How would he go about assessing the political risk? If the firm undertakes the project, how would he manage political risk (before any incidents occur)? If the firm undertakes the project and a political incident occurs, how would he manage the incident?

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