• Has implications for establishing
organisations or offices or doing business
with organisations in risky countries
(especially for attracting employees,
compensation, security policies)
• Grants and funding initiatives can assist
in establishment of businesses in some
locations, including incentives for hiring of
nationals. Sometimes these are used to
stimulate an economy during a recession
• Governments come and go and can have a
direct effect on organisations based abroad
in terms of changing policies, attitudes
towards foreign organisations, etc