Quastions ch 3 Essay Example | Topics and Well Written Essays - 500 words

Quastions ch 3 - Essay Example ndispensable to fathom those political philosophies besides influencing economic, and social activities may contribute to stable practices internationally and locally. Contemporary profile trends of political systems involves democracy and totalitarianism. Totalitarianism constitutes non-democratic government political spectrum with issues such as dictatorship, communist, fascist, and authority. Democratic government profile remains reactionary, liberal, radical, and conservative. Other profile trends in political systems revolves around engines of democracy and third wave of democracy issues. Third wave democracy issues and engines of democracy constitute the modern trends in contemporary political systems. Third wave democracy relates to the main surge of democracy in history. The surge results from vast international push towards democracy in the 21st century. Engines of democracy constitute developments that drives success of modern political systems including improved communications technology and failure of totalitarian regimes in delivering economic progress. Another engine of democracy for contemporary political trends includes economic dividends of increasing political freedom. Political risks entail perils faced by corporations, investors, and governments during economic relations. The risks also involve political decisions or events within a nation that may adversely affect sustainability or profitability of investments. Management of political risks consists of a three-step process that includes identification of fundamental perils, measuring political influence on performance, and determination of the appropriate method of managing the risks. Identification involves risk managers scanning horizons for political risks and developing inventory of specific risks types. The next step involves assessment and quantification of potential impacts of political risks. Quantification may involve the use of discounted cash flow method to estimate financial