Political risk and the evolution of the control of foreign business: Equity, earnings and the marketing mix

Extreme forms of government intervention such as expropriation, nationalization, and confiscation have received much attention in the business and academic communities. This paper argues that in the future governments will attempt to regulate foreign business activities by exercising control over marketing mix variables to achieve socioeconomic and political objectives. Therefore, international marketing managers should anticipate the likely effects of political risk on marketing mix variables and develop strategies accordingly.