One factor of business risk that is outside of the firm’s control is political risk. Political risk can range from insignificant to severe across different countries, but can also vary at different times. While firms cannot directly control political risk, understanding it is an important part of evaluating a company’s overall strategic framework.
Considering this please address the following prompts in your discussion:
Analyze the political risk in (Mexico). How will this political risk affect your area of business (IT industry)?
In terms of how this political risk will affect business operations within the IT industry, companies need to be aware that they need to operate according to all applicable laws and regulations at all times so as not to be exposed should something go wrong or become illegal without warning. Companies must also monitor changing economic conditions closely so that they can adjust their strategies accordingly. They must also be prepared for unexpected delays in government processes such as obtaining licenses or permits, getting contracts approved by authorities, etc., which may cause disruptions in their normal operations. Lastly, companies should make sure they understand any potential implications associated with free trade agreements before signing them into effect so they do not find themselves caught up in disputes between countries if something goes awry during negotiations/implementation phases.