Political Risk: Global location and PEST analysis

Sometimes students get a bit stuck on the politics part of PEST analysis. How are businesses affected by politics? Lots of examples come up on the T2U Business blog. Firstly, politics is the law, and business legislation has a dramatic impact on firms. Then comes a bewildering array of regulations and tax implications. If you think that's complicated, consider the difficulties of making international location decisions. (I was wondering what might have brought BMW to the UK last year).

One aspect of these international decisions is the dimesion of political risk. The Arab Spring of 2011 sent shock waves around the Middle East that are still reverberating. With these thoughts in mind, you might like to check out the new Global political risk atlas 2013 that has newly appeared on the Guardian website. Many international firms have to look long and hard before they post staff abroad, never mind set up operations there.

Where might you be hesitant to invest, even if the rewards looked high?