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Poltics matter when taking a decision to invest in a foreign country. Why? Transnational are looking for business environment where political cyles will not make a difference in regards to the "rules of the game" i. e. TN's expect any government irrespective of the political wing will uphold the international contract, that companies will have easy acces to the market, that regulatory condictions are mantained, that TN's can easily repatriate their revenues, and can be warranted of revenues' convertibility.
Politics matter when the threat of populism arises and the possibility of nationalization for ex in extractive economies is inmiment. Countries which uphold international contracts and regimes are more secure places for long term investment. Social change and social demands must be critically analysed in terms of populist agendas. Elite and non-elite struggles, how vibrant and how empowered middle classes are should be critically analysed. Business need to find expert opinions on political temperaturas. What really matters is the INSTITUTIONAL FRAMEWORK or architecture and its resillience to cope with social change, new actors and political struggle and at the same time respect the "rules of the game"
