Adverse affects on a company’s activities

Adverse affects on a company’s activities

Political hostility, internal stability, legal restrictions or unfavourable business conditions adversely affecting a company’s activities.

Political Hostility: Zimbabwe provides a current recent example of asset expropriations of white farmers many of whom were invited by Mugabe himself in the sixties and seventies to assist in developing the agricultural assets of Zimbabwe. Many continue to legally battle the government at Southern African Development Community (SADC) tribunals. Their livelihoods were completely shattered as Zimbabwe's economy was similarly shattered.

Internal Stability: The recent clashes between armies of Georgia and Russia exemplify issues of internal stability. It might be very difficult to continue to operate or contemplate opening greenfield investments in Georgia at this time. A full coverage of the issues and events is available at VOA.

Legal Restrictions: Several layers of legal restrictions in terms of direct marketing exist in Europe and a detailed list for each nation may be reviewed at dbt. This could adversely effect any global marketing schemes in Europe.

Unfavourable Business Conditions: Southern European countries are described as having unfavourable business conditions when compared to their northern counterparts. Italy, Spain, Greece, and Portugal possess a lack of innovation due to comparative lack of competition, regulated markets, and inefficient education systems according to Enrico Deiaco, a Swedish economist and a former policy expert at the European commission.

Four major revolutions come to mind:

1. Mexico 1938: Expropriation of the Petroleum Industry of Mexico

Mexican oil industry remains out of bounds in terms of NAFTA (a sour point for the US).

2. Uganda 1972: Idi Amin

Amin ordered expulsion of Uganda's 70,000 Asian citizens and expropriated their property, including 5,655 firms, factories, and farms as well as U.S. $400 million in personal goods.

3. Egypt 1956: Suez Canal Nationalization ht

4. China 1949 and Russia 1917: Protracted nationalization of foreign-owned businesses

"Communism: Taking from the rich and keeping it."