a proactive approach exhibits the hallmark of good management-enterprising, confident, and controlling. However, it fails to explain why many MNEs do, the exact opposite, choosing to manage political risk passively by treating it as an unpredictable hazard of the business environment. They reason that no model, regardless of how brilliantly it has been conceptualized, how systematically it has been specified, and how precisely it has been administered, can consistently predict political risk. Granted, shrewd models extrapolate meaningful insights from economic, political, and social reports about who may take office, what polices may pass, and how these sorts of political events affect the business environment. Unquestionably, these insights make the political system and its risks understandable. They do not, however, make predictable