Political Risk: A Simulation for Business Practitioners

Abstract

The International Political Risk simulation is designed to introduce practitioners to the topic of political risk and its role in international business. International business people must not only evaluate market variables (target markets, distribution costs, promotion costs, etc.) but must also have a thorough grasp of the political risk dimensions that may influence their international strategy. The simulation is structured to emphasize political risk as a strategy variable for international expansion. A decision-making environment of uncertainty is used as practitioners gather, analyze, and formulate an international expansion strategy, based on limited information and resources. The simulation is a unique way to introduce the topic of political risk as an international strategy variable in a seminar setting. The game also gives practitioners a “feel” for decision-making in an international environment.