Impact of political risks in international marketing: the case of West Africa

CONCLUSION

Some degree of political risk exists in every country, although the nature and importance of these risks vary. In political risks assessment, as in most business decisions, it is a matter of balancing risks rewards.

If a firm is considering an investment in a political risky environment, it should be sure that it can obtain rates of return that are high enough to offset the risks of entering that market.

A firm might build a domestic political support in the host country by being a good corporate citizen; for example, the firm might purchase inputs from local suppliers where possible, employ African countries citizen in key management and administrative positions, and support local charities.

West African is confronted with many political upheavals, but the market potential is still high. International marketing is a one of the pillar of world peace, as international relations are. So invest in a risky country could yield peace that will increase profits. What and how much information a firm needs to assess political risk will depend on the type of business it is and how it is likely to be in the host country. Given that the more they stay and the more they may get into political trouble. Also, the more they stay, and the more they need to legally support the host country.

ECOWAS is currently carrying out political, economical and monetary reforms that could establish a strong democratic order and facilitate the free move of goods and services. The promising future of the region with plethoric natural resources requires special attention from international marketers.

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