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Alleviating Political Risk For Small U.S. Firms Investing Abroad: The Role of OPIC

Alleviating Political Risk For Small U.S. Firms Investing Abroad: The Role of OPIC Many U.S. companies fear investing in Third World countries because of the political risk associated with such ventures. Recent events in Iran, Nicaragua, El Salvador, the Philippines and others have under scored such concerns, making U.S. businesses reluctant to participate in some of the fastest growing markets in the Third World. Such political risks need not be so worrisome ‐ many U.S. business people remain unaware of how the Overseas Private Investment Corporation can substantially reduce risks by insuring companies against such uncertainties. This paper discusses the ways through which OPIC can alleviate political risk and compares OPIC’s insurance with the programs of private political risk insurers. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png American Journal of Business Emerald Publishing

Alleviating Political Risk For Small U.S. Firms Investing Abroad: The Role of OPIC

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Publisher
Emerald Publishing
Copyright
Copyright © 1990 MCB UP Ltd. All rights reserved.
ISSN
1935-5181
DOI
10.1108/19355181199000010
Publisher site
See Article on Publisher Site

Abstract

Many U.S. companies fear investing in Third World countries because of the political risk associated with such ventures. Recent events in Iran, Nicaragua, El Salvador, the Philippines and others have under scored such concerns, making U.S. businesses reluctant to participate in some of the fastest growing markets in the Third World. Such political risks need not be so worrisome ‐ many U.S. business people remain unaware of how the Overseas Private Investment Corporation can substantially reduce risks by insuring companies against such uncertainties. This paper discusses the ways through which OPIC can alleviate political risk and compares OPIC’s insurance with the programs of private political risk insurers.

Journal

American Journal of BusinessEmerald Publishing

Published: Jan 1, 1990

Keywords: Third World countries; Political risk; Developing markets; Overseas Private Investment Corporation; OPIC; Private political risk insurers

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