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PRACENAUKOWEUNIWERSYTETUEKONOMICZNEGOWEWROCŁAWIUnr99
Finansepubliczneimiędzynarodowe
2010
AdelAlKhattab
Al-HussainBinTalalUniversity,CollegeofBusinessSchool
JohnR.Anchor,EleanorM.M.Davies
UniversityofHuddersfieldBusinessSchool
THEUSEOFPOLITICALRISKASSESSMENT
TECHNIQUESINJORDANIAN
INTERNATIONALFIRMS
Summary:Theaimofthisresearchwastodescribeandexplaintheuseoftechniquesof
politicalriskassessment(pra)inJordanianinternationalfirms.Theresearchidentifiedthe
extensiveuseofqualitativepratechniquesduetotheirflexibility,simplicityandlowcost.
Quantitativetechniques,ontheotherhand,wereusedbyonlyaminorityofrespondents.In
anyevent,Jordanianinternationalfirmsbelievethatofficialdataissubjecttocensorshipand
isthereforenotreliable.Thisunderminestheefficiency
ofusinghighlysophisticated
quanti-
tativetechniques.
Keywords:politicalrisk,techniques,Jordan,internationalbusiness.
1.Introduction
Politicalriskstudieshavefocusedmostlyondevelopedcountries.Therehasbeen
muchlesseffortdirectedtothesubjectindevelopingcountries.AlthoughJordanis
viewedasoneofthemajorplayersintheeconomicallyandpoliticallyvolatileMid-
dleEastregion[Elkak2003;Anchor,Davies,AlKhattab2006],fewstudiesofpo-
liticalriskhavebeenundertaken.Thispaperreportsonthefirstpieceofresearchon
politicalriskassessment(PRA)tobecarriedoutinJordan.Thisresearchisalsoone
ofthefirstattemptstogainaninsightintothePRAtechniquesusedbyinternational
firmsbasedindevelopingcountries.
TherehavebeenanumberofstudiesofthebusinessenvironmentinJordanand
otherMiddleEastcountrieswhichhavedealtwithissueswhichareeitherassociated
withorwhichcontributetopoliticalrisk(eg.[Hassanet.al.2003;Abumustafa2007;
Bilson,Brailsford,Hooper,2002]).Howevernoneofthesestudieshasexamined
eitherthemanifestationorcausesofpoliticalriskassessmentineitherJordanorthe
MiddleEastasawhole.
Jordanhasrelativelyfewnationalresources,unlikesomeofitsneighbours.This
partlyexplainswhy,inspiteofitsrelativelysmallpopulation(6milli
on),ithas
suf-