1. Alexander Consulting Enterprise 10/12/2015 Political Environment of Global Markets

2. Alexander Consulting Enterprise 10/12/2015 - Confiscation - Expropriation - Domestication - Protectionism -Regulations:  Export Controls  Import Restrictions  Exchange Controls  Local-Content Laws  Tax Controls  Price Controls  Labor Problems - Political and Social Activity -Violence, War -Spill over of Country Perception Political Risks

3. Alexander Consulting Enterprise 10/12/2015 The Bush Factor? Image of American Brands in Foreign Countries Handelsblatt 11 August 2004, p.9

4. Alexander Consulting Enterprise 10/12/2015 Protectionism Governmental Restrictions on Trade to Protect its Interests Arguments for Protectionism: Infant Industry Jobs at Home Protection of Home Industry Conservation of natural Resources National Defense Retaliation Lasting Protectionism has always been detrimental to countries in the long run.

5. Alexander Consulting Enterprise 10/12/2015 The Price of Protectionism IndustryTotal Costs toNumber ofCost per ConsumersJobs SavedJob Saved (in $ millions) Textiles and apparel$27,000640,000$42,000 Carbon Steel6,8009,000$750,000 Autos5,80055,000$105,000 Dairy products5,50025,000$220,000 Shipping3,00011,000$270,000 Meat1,80011,000$160,000 SOURCE: Michael McFadden, “Protectionism Can’t Protect Jobs,” Fortune, May11, 1987, pp. 125.

6. Alexander Consulting Enterprise 10/12/2015 Source: 2002 Annual Report—Federal Reserve Bank of Dallas

7. Alexander Consulting Enterprise 10/12/2015 Managing Political Risk 1. Identify Financial Exposure - Relative Importance of Market - Mode of Entry 2. Quantify Political Risk - Use of Internal and External Experts - Use of Risk Management Companies

8. Alexander Consulting Enterprise 10/12/2015 Business Environment Risk Intelligence (BERI) 1. Identification of Risk Factors 2. Correlation of Factors with Occurrence of Damage 3. Quantitative Weighing of Risk Factors Beri Provides a Rating of Countries According to Their Political Risks  Economic Freedom Index http://www.heritage.org/Index/Ranking.aspx  Market Potential Index http://globaledge.msu.edu/resourcedesk/mpi/ Quantify Political Risk

9. Alexander Consulting Enterprise 10/12/2015 Strategies to Lessen Political Risk - Joint Ventures - Good Citizen - Planned Domestication

10. Alexander Consulting Enterprise 10/12/2015 Some web pages: http://www.state.gov/ The U.S. Department of state provides a wide variety of information on international topics including a rudimentary analysis of political and economic risk in foreign countries. http://www.census.gov/foreign-trade/www/index.html This governmental site provides information about foreign trade statistics http://www.beri.com This privately held for-fee site provides information about country risk. Upon request BERI analyses and evaluates industry specific political risk in foreign countries