An Assessment of the Political Risk Management Strategies by Multinational Corporations (MNCs) operating in Zimbabwe
Wilford Mawanza
Abstract
The purpose of this study was to assess the nature of political risk in Zimbabwe and strategies used by MNCs in
managing the risk. The study was done through a survey on perceptions of decision makers of 25 MNCs operating
in Zimbabwe. It was found out that the best of all strategies to manage political risk was the low involvement
strategy through an integrative approach. This is done by involving the local government and good citizenship
approach, hence prospective investors were recommended to adopt strategies like joint ventures with local firms
especially given the government’s indigenization bill, employing local management and developing good
relations with the host government and comply with the national environmental rules / norms and paying more
vigilant attention towards this issue.
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