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lead to high level of uncertainty in these areas. However, economic benefits offered by operating in these nations still motivate many companies to relocate their plants to these countries. These foreign direct investments (FDI) do help the local economic to grow, but often at the stake of environmental condition which lead to social disturbances.
Insurance as a tool to transfer risks might be helpful for companies unfamiliar with risks in developing nations, but not all insurers would cover those kinds of risks.
This paper takes a look at a case study of developed nation based companies which do have business activities in developing nations and faced risks which are very unlikely to appear when conducting business in developed nations...
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