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Countries with Greatest Political Risk for a U.S. Business

Autor:   •  February 2, 2015  •  Essay  •  299 Words (2 Pages)  •  548 Views

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Best business country for the United States: Canada

The political risk level of the United States’ neighboring country is extremely low as it is considered a 1 on the Country Risk Tier by AMB’s Country Risk Report. A few of the reasons for Canada’s very low risk rating is due to the fact that it has a significant amount of natural resources, it is a high-income country and its government and overall legal system is transparent and efficient. The country also enjoys a strong economy and is ranked #19 out of 189 by the World Bank in countries with the highest ease of doing business with. It is a great partner of the United States due to its geographic relation, its similarities in culture, trade relations and overall long time partnership.

http://www3.ambest.com/ratings/cr/reports/Canada.pdf

Worst business country for the United States: Sudan

According to Aon’s Interactive Risk Map one of the most politically risky countries in the world to do business with is Sudan. Due to its ethnic and tribal divisions it is rated as having very high levels of political instability. The country also has foreign debt that is very unsustainable due its recent secession from South Sudan in 2011. The African country also has a strong reliance on China, which is only expected to increase due to its loss of oil revenues and increasing possibility of sovereign non-payment. Oil production and investment is also hurt due to the border skirmishes and transit fee deadlocks. Protests that took place in 2013 due to the price increases in oil add to the country’s high political riskiness classification. A few more unattractive factors contributing to its riskiness are the restricted and/or lack of access to capital, high corruption, poor and lax government policies and effectiveness and high legal and regulatory risks.

http://www.riskmap.aon.co.uk/political_riskmap.aspx#

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