Source: United News Network
Author: Xin Cuiling
How to deal with politics is a sensitive and difficult challenge for most companies.Especially in the era of globalization, the political risks faced by enterprises were even more unpredictable.For a long time, Taiwanese enterprises have been right to political risks, or ignore, or dodge, or low -key; until in recent years, the global environment of drama has caused many companies to be affected, and it is increasingly impressed by political risks.However, what is political risk?What are the more attention?
According to most textbooks, those who affect corporate operations and profit expectations due to political instability such as political contradictions and conflicts of power can be called political risks.However, in fact, political risks not only have different composition, but also different from time to time: from the guidance due to the political and economic society of the country where the country is located, to the wrestling of the country, and the concept of geopolitics that subsequently triggered.Instead of covering many situations.In this regard, according to the management operation method that the enterprise may take according to the risk attributes, it is divided into the following categories:
1. Administrative political risks: Such risks are mainly related to the government governance and administrative cleanliness of the landlord.Frequently aspects of the implementation of taxes, customs, workers, fire protection, etc., are used to interfere with foreign capital operations at the implementation level of foreign capital, and even rent -seeking bribery is the case.When Taiwanese enterprises invest in the country, there are many experiences of such political risks; and manufacturers often operate through contacts to offset their negative impacts.
2. Policy -oriented political risks: Such risks often appear in the landlord government's policy unpredictable and changing positions, so the landlords do not fulfill their guarantees of foreign companies.Although the risks of policy may not be accurately predicted, most of them can be followed.In addition to maintaining the policy sensitivity and simulation evaluation, manufacturers can be used as a bargaining chip to interact with the landlord government by favorable information. In addition, Banks, joint venture vendors, etc. to hedge risk.
Three, structural -oriented political risks: All countries have scars or marks that cannot be easily touched.It may be related to its national narrative, national identity, historical trauma, or their long -term social, class, region, and ethnic differences.Such topics are often connected to strong collective emotions, belonging to deep, structural political issues.As a foreigner, it is difficult for enterprises to respond to such risks through operations and management methods, and to avoid thunder.Once you tose taboos by mistake, apologize in real time, and try your best to compensate, the importance of expressing sincerity may not be resorted to law and strive for reason.For example, more than six years of Formosa Plastics Vietnam Steel Factory incident seemed to be pollution, but it actually touched structural risks.
Fourth, international political risks: such risks may be due to diplomatic frictions, military conflicts, and social turmoil in the landlords;There have always been a previous example of the risks that have caused corporate disasters to disaster: for example, a few years ago in China and Vietnam's China Sea sovereign disputes, which detonated Vietnam's tide and spread to the Vietnamese businessmen.Under the political pressure of the United States and the Taiwan government, we went to the United States to build factories.The situation is stronger than people. At this time, most of the companies choose to take advantage of the trend, negatives reduce losses, conservatives decentralize risks, and positives strive to be in the new bureau.
It is worth noting that, first, in the reality, political risks may not be a single category, and there may be a variety of property attributes. At this time, it is necessary to further identify the dominant category.Second, the concepts and points of each risk category are different.If the category is incorrect, for example, the risk of structural type is considered as an administrative or policy type, and the cost of corporate costs in vain.Third, the complexity of new political risks has recently increased significantly, especially high -sensitive overseas investment cases involving structured and geopolitical risks. In addition to the market, it is necessary to pay attention to the overall political situation.
The author is a professor at the Department of Political Economics of Sun Yat -sen University
