Political risks and internationally operating businesses in Finland
1University of Oulu, Oulu Business School, Department of Management and International Business, Management
|Online Access:||PDF Full Text (PDF, 0.7 MB)|
|Persistent link:|| http://urn.fi/URN:NBN:fi:oulu-201910253023
Oulu : H. Pikkarainen,
|Publish Date:|| 2019-10-28
|Thesis type:||Master's thesis
Internationally operating businesses in Finland currently face a significant threat in the form of political risks. Research has shown that many international businesses in Finland have trade in areas where probability for political unrest or terrorism is high and the consequences of them reflect to even Finland. Furthermore, political instability and anxieties in Finland have lately grown in number remarkably.
This study aims to assess the factors that cause political risks in Finland. Building on existing literature on political risks in international business, the study asks: How do political risks influence internationally operating businesses in Finland? To find answer to that question, qualitative empirical research based on semi-structure theme interview was conducted on the topic Political risks and internationally operating businesses in Finland. Five persons with different backgrounds were interviewed via telephone and grounded on the content analysis and thematizing, the answers were reflected to the research question and already existing literature.
Analysis of the responses demonstrated that political risks in Finland have drastically increased, mostly because of increasing differences in living standards, immigration politics, extreme right thinking and the misuse of technology. It is pointed out that the bigger the firm, the more political risks affects it. Because of those reasons, internationally operating businesses in Finland are more and more concerned about the increased threat level of terrorist attack in Finland but their know-how is only at developmental level in terms of managing every potential risk scenario. Looking outside Finland, political risks influence internationally operating businesses above all through indirect consequences of target countries and through direct ways, such as cyber-terrorism.
On that basis, it is stated that possible risk scenarios regarding political risks increase faster than internationally operating businesses develop adequate risk management. Further research is needed in greater number of business fields, both private businesses and businesses owned by state so that that the research results could be wider generalized.
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