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Title The impact of political risk on foreign direct investment decisions by South African multinational corporations
Full text http://upetd.up.ac.za/thesis/available/etd-02232013-120434/
Date 2013
Author(s) Koboekae, Thabo Kgosietsile
Contributor(s) Mr J Lamprecht
Abstract South African Multinational Corporations (MNCs) are expanding their operations and seeking investment opportunities elsewhere bedsides South Africa. Some of these opportunities present themselves in unfamiliar environments which are politically risky nonetheless South African MNCs continue to invest in such countries. The aim of this research paper is to establish the impact of political risk on foreign direct investment decisions by South African MNCs. The paper seeks to establish key political risk factors that South African MNCs consider prior to investing in a country deemed politically risky. Once they have indentified these political risk factors, what are the Foreign Direct Investment (FDI) drivers attracting them to a specific country despite its political climate? The paper attempts to understand the decision making process of MNCs when seeking to invest in a politically risky country and to what extent do MNCs involve the incumbent government and other local stakeholders in this process. Lastly the paper seeks to establish how MNCs manage the impact of political risk in a country.A qualitative research methodology with an exploratory design was used to collect the data. In-depth face-to-face interviews were conducted with eight representatives from South African MNCs which are doing business in politically risky countries.The results reveal that political risk has a significant impact on the FDI decision making process of South African MNCs and how they go about conducting this process has a far reaching impact on the success of the MNC in a politically risky country. Conducting a thorough political environment assessment is critical, by engaging the incumbent government and all relevant stakeholders is key when seeking to invest in politically risky countries. Politics drive economics therefore one cannot separate economics and politics. © 2012 University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of the University of Pretoria. Please cite as follows: Koboekae, TK 2012, The impact of political risk on foreign direct investment decisions by South African multinational corporations, MBA dissertation, University of Pretoria, Pretoria, viewed yymmdd < http://upetd.up.ac.za/thesis/available/etd-02232013-120434/ > F13/4/186/zw
Subject(s) Gordon Institute of Business Science
Language en-uk
Publisher University of Pretoria
Type of publication text
Format application/pdf
Source http://upetd.up.ac.za/thesis/available/etd-02232013-120434/
Rights unrestricted; I hereby certify that, I have obtained and attached hereto a written permission statement from the owner(s) of each third party copyrighted matter to be included in my thesis, dissertation, or project report (
Repository Pretoria - University of Pretoria, Theses and Dissertations
Added to C-A: 2017-03-10;15:13:05