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The Ways of Political Risks Miligation by International Oil and Gas Companies: the Case of ExxonMobil

Student: Evgeniya Prokopchuk

Supervisor: Fyodor Lukyanov

Faculty: Faculty of World Economy and International Affairs

Educational Programme: International Business (Master)

Year of Graduation: 2018

This paper analyzed theoretical aspects of political risk by the case of the international oil and gas company Exxon Mobil. It was revealed that the risks posed by the government's activities in relation to legislation (such as the introduction of international sanctions that force businesses to leave markets, and environmental regulation) are a great danger to the corporation. To mitigate such risks, the company uses such strategic ways to reduce political risks as geographical and production diversification of production, interaction with local companies. Moreover, it takes preventive measures against political risks’ emergence: the company acts in accordance with the law, invests in the creation of public goods in the host country etc. The hypothesis about the preferential use of strategic risk reduction methods was confirmed and the results obtained in the analytical part align with the theoretical conclusions.

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