The Hidden Risks in Emerging Markets
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 ...
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