by Witold J. Henisz and Bennet A. Zelner
From the Magazine (April 2010)
When a firm with a value-generating technological or managerial capability invests abroad, its shareholders and the host country’s citizens both stand to benefit. But no matter how good the apparent fit between what foreign companies offer and what host countries need, success is far from assured. Elections and other political events, economic crises, and changing societal attitudes can disrupt the best-laid plans in both emerging and advanced economies. The interplay of these forces—and the implications for the political choices that multinational firms make—will become especially prominent as national governments chart an uncertain course toward stabilization following the global financial meltdown.
Read more on Emerging markets or related topics Risk management, International business and Financial service sector
A version of this article appeared in theApril 2010issue of Harvard Business Review.
Read more on Emerging markets or related topics Risk management, International business and Financial service sector