Assessment of Potential Threats: Middle East and Africa

556 Words Feb 1st, 2018 2 Pages
For companies in the Middle East, the recent Arab Spring and a series of regime changes are causes of concern because they "could lead to civil wars; regime changes resulting in governments that are hostile to the US and/or Israel" (Protests, 2011, Westlaw). Middle Eastern volatility can also cause unstable crude oil prices which, although significant for the entire world economy, would have a particularly negative impact on the region. In terms of securing investment capital, "capital market reassessment of risk" can make necessary funds scarcer to find (Protests, 2011, Westlaw). For companies wishing to build a base of customers in the area, economic and political instability can result in a sharp downturn in demand and can also threaten supplies of essential raw goods.
Of course, the persistent security concerns related to terrorism as well as internal domestic disputes means "security concerns for evacuation of personnel" as well as potential "loss of property and business interruption" (Protests, 2011, Westlaw). Foreign companies and foreigners are likely to be targets. In the Middle East, women and…
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