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Consequence: Investors may lose their investment without fair compensation. Mitigation: Using investment treaties, purchasing political risk insurance, and diversifying investments.

Consequence: Inability to exchange domestic currency for foreign currency, hampering international transactions. Mitigation: Utilizing currency hedging instruments, diversifying currency exposure, and setting up local currency reserves.

Consequence: Potential for damage to assets, business disruption, and loss of life. Mitigation: Buying political violence insurance, creating contingency plans, and diversifying location of assets.

Consequence: A country might default on its debts, impacting lenders and investors. Mitigation: Researching country credit ratings, using credit default swaps, and investing in stable countries.

Consequence: Sudden changes in laws may impact operations and profitability. Mitigation: Conducting thorough regulatory due diligence, lobbying, and ensuring compliance flexibility.

Consequence: Unpredictable changes in tax regimes can affect company profits. Mitigation: Employing tax advisors, using financial instruments to hedge tax liabilities, and incorporating in tax-stable jurisdictions.

Consequence: Contracts are rendered unenforceable or modified, leading to financial losses. Mitigation: Making contracts under international law, involving arbitration clauses, and government relations strategies.

Consequence: Barriers to moving capital from one country to another that can limit profits. Mitigation: Structuring investments to allow for multiple exit strategies and maintaining a strong local banking relationship.

Consequence: Increased costs or blocked access to markets due to tariffs or non-tariff barriers. Mitigation: Diversifying markets, investigating bilateral trade agreements, and optimizing supply chains to bypass tariffs.

Consequence: Strikes and other labor issues can lead to downtime and reduced productivity. Mitigation: Investing in good labor relations, offering competitive wages, and maintaining a flexible workforce.

Consequence: Inefficient or biased legal systems can result in unfair treatment and losses. Mitigation: Engaging local legal experts, thorough contract drafting, and considering international arbitration for dispute resolution.

Consequence: Economic downturns can lead to market contraction and credit tightening. Mitigation: Employing robust financial planning, diversifying investments, and hedging against market volatility.

Consequence: Poor infrastructure can lead to increased costs and logistical challenges. Mitigation: Investing in local infrastructure, partnering with local firms for logistics, and contingency planning.

Consequence: Nationalization or increased control over natural resources limits market access. Mitigation: Engaging in diplomacy, forming joint ventures with local entities, and considering international legal protections.