How Political Risk Affects RV Rental Businesses

Political risk is one that affects the economic interests of companies. This is a consequence of changes or the lack of political stability in a country or region. From this point of view, any place in the world presents a greater or lesser political risk.

Differences between micro risk and political macro risk for RV rental business

When assessing and weighing the consequences of possible political disruption, it is convenient to differentiate between political macro-risk and micro-risk.

Political macro-risk refers to those changes that affect all companies and commercial and industrial networks that operate in a given country. This may be due, for example, to widespread expropriations of foreign companies or to armed conflicts.

Political micro-risk, however, comprises those decisions or events that harm a specific company such as RV rental industry. Corruption or making specific political decisions are some typical examples.

Political risk depending on the scope of the investment

On the other hand, the level of activity and involvement in the regional economic framework that a company assumes also determines the degree of political risk that is being assumed. In this sense, these 3 categories are usually differentiated:

  • Trade political risk
  • Political risk on international technology and intellectual property licenses
  • The political risk from direct investment abroad

The risk of commercial exchange is the one that usually supposes more moderate economic damage. Investment in foreign territory is the one that can have the greatest impact on the balance sheet of a company.

How does political risk affect companies?

Political risk has repercussions on very varied areas of trade and the international economic activity of companies.

Supply chain

The absence of political stability can also affect the supply chain. Currently, companies are supplied with components and raw materials from multiple countries and whose transport may involve crossing several borders. Any event or political decision that interferes with the flow of the supply chain can seriously affect an international business. For example, the war between Ukraine and Russia has affected hundreds of companies directly or indirectly.

Hyperinflation and currency fluctuations

The volatility in the exchange rate of the currency or currency used in a certain country also directly affects the income statement of a company. Fluctuations can, however, be due to many reasons.

In some cases, political corruption creates a chain reaction in the stock markets causing the local currency to devalue against that used in the country of the foreign company.

On other occasions, excessive inflation and the lack of control by the regulatory entities of the local financial market make it impossible to make a reliable calculation of the results of a given financial year, after applying the corresponding exchange rate.

Politics In The Workplace: Jackety Solar Business

Political activity in the workplace is permitted for employees as long as they do not violate their contractual obligations. Civil servants, on the other hand, have to remain neutral on duty. Even outside of work, you have to observe the rule of moderation.

Political activity at Jackety generator office

‌Although the principle of freedom of expression applies, political activity in the workplace is only permitted to a limited extent. This applies to Jackety Explorer 1000 review (Jackery Explorer 1000 Testbericht) office employees as well as employers.

‌Political activity by employees

‌There is no direct ban on political activity for employees. However, they are obliged to protect the interests of the employer. You are therefore not allowed to do anything to disturb the peace in the company. Workers involved in political activities at work should consider the following:

  • Political statements that are racist or discriminatory have no place in the workplace. They may also constitute offenses of insult.
  • Employees are allowed to express their political opinions. However, they should not instigate political disputes and discussions.
  • Working hours are basically for work. Taking a break from work for political activity is not permitted.
  • Employees may not use any of the employer’s materials for the purpose of political activity.
  • If the employee has a contact at work with people outside the company, such as customers or suppliers, he must exercise political restraint towards them.

Political activity outside of work is usually a private matter. However, it becomes problematic if the employee wears his uniform at political events, such as a demonstration. In this case, the employee associates the entire company with a certain political affiliation.

Jackety generator

Political activity at work: employer and works council

Employers and works councils must refrain from political activities at work for or against a party. Party political activity can take many forms. The following activities are prohibited:

  • Distribution of party information material
  • Oral, written, visual or digital advertising
  • Votes
  • Signature collections
  • Party political posters or stickers

Political activity and community service

‌A non-profit corporation usually pursues its purpose outside of political events. If such a body influences the political opinion of the public, this cannot be combined with its non-profit character. In this case, one recognizes its charitable status. There is an exception if the main purpose of the corporation can only be achieved through political activity.

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