Assessing the political and regulatory climate for marketing in a country or region of the world involves not only identifying the current climate but also determining how long a favorable or unfavorable climate will last.
Political risk analysis is the methodical process of evaluating and controlling the political risks associated with foreign investment or global trade. Political risk can have a wide range of implications. Political risk is frequently described as unsystematic risk or all nonbusiness risk, for instance, in the capital market theory.
Many empirical techniques and statistical models are used by political scientists, including social network analysis, maximum likelihood estimation, laboratory and survey studies, and linear regression. A thorough theoretical examination requires the use of mathematical models.
Monitoring and evaluation (M&E) are touchy subjects in the relationship between donor organisations and recipient governments, particularly now that recipients are taking on more of the burden of carrying out aid programmes.
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