Guarantees Against Loss to Transnational Corporations

Abstract

Guarantees and funding to cope with possible losses to transnational corporations, alternatively referred to as multinational corporations, encompass risk management principles, theory, and applications. The paper analyzes the risks faced by multinational corporations in their overseas operations, including credit and political risks; the latter treat ing of such risks as currency devaluation, expropriation of plants, kidnapping of key executives, and ransom demands. Risks to property valuation receives emphasis, but often risks to persons reflect an intertwine in risk management by trans national enterprises. Various private and public insurance mechanisms are available to meet these problems, and the effects of these approaches on society are examined.