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Essays on Political System in the US, Kenya, and Saudi Arabia and Level of Political Risks Tied with Investing Essay

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The paper “ Political System in the US, Kenya, and Saudi Arabia and Level of Political Risks Tied with Investing” is a thoughtful example of the essay on business. International business involves doing business between the two countries. Foreign investors normally consider the stability of the political system of a country, the risk of ownership, risk of operation, the foreign investment regulations, security of the country, and the economic stability of a country before making a decision of whether to invest in a country or not to invest. In this regard, they analyze various aspects of the countries they want to invest in to determine whether they will invest in them or not.

This document analyses the political system in two developing countries and one developed country i. e. Kenya, the United States of America, and Saudi Arabia and determines the level of political risks associated with investing in the two countries. While Kenya has had a stable economic system and peace and had attracted many investors in the past, the postelection violence of 2007/2008, the election pressures, and the continued grenade attacks make foreign investors fear investing in the region.

The United States has a stable political and economic system that favors foreign investment. In addition, the U. S. has developed investment laws and regulations that are aimed at attracting foreign investors in the country. The Kingdom of Saudi Arabia though has made investment reforms that encourage foreign investment, has an unstable corrupt political system that might not favor foreign investors. Foreign investors may, therefore, shun away from investing in the kingdom. International BusinessIntroductionInternational business is a commercial transaction that is done between two countries and normally covers areas beyond their boundaries of politics.

While private organizations get involved in international business for-profit purposes, governments normally get involved for both profit and political reasons. It involves transactions that involve the crossing of borders with goods and services. The advancement of technology and globalization has made businesses operate internationally without many problems regarding geographical areas and means of communication.

References

Albassam, B. A. (2011). Political reform in Saudi Arabia necessity or luxury? Middle East Studies Online Journal, 3(6). 1-23.

KPMG. (2008). Investing in the U.S. – A Guide for Foreign Companies. Retrieved from http://www.kpmg.com/Ca/en/IssuesAndInsights/ArticlesPublications/Documents/Investing%20in%20the%20US%20-%20A%20Guide%20for%20Foreign%20Companies.pdf.

Nyamwange, M. (2009). Foreign direct investment in Kenya. University of Nairobi.

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