Keene Industries in Liberia
Case number:
A03-00-0010
Abstract
All firms operation in foreign environments face some element of political risk. Political risk is a probability of a loss to a foreign enterprise that stems from some political or social cause. This case reports losses to the Keene Industries rubber plantation in Liberia as obtained from the records of the Overseas Private Investment Corporation (OPIC). This political violence claim covered some but not all of Keene's losses. The case explores the sources of the claimed losses, the nature of other unclaimed losses, and alternatives for political risk management.
Teaching
This case illustrates the political and social problems faced by foreign investors in emerging economies. It specifically explores the calculus of losses and the need for anticipation of political contexts of investments. Political risk insurance is the focus of risk management, with alternative management techniques suggested.
Case number:
A03-00-0010
Subject:
Business
Government
International Policy
Year:
Setting:
Liberia 1990
Length:
12 pages
Source:
Library