There are many factors that businesses and organization consider and analyze before making the final decision to venture and establish its operation in a foreign country. In the recent times, the concept of globalization has resulted in increased interaction and trade that has been facilitated and supported by technological enhancement. It has created and expanded markets where many businesses have explored to help them realize their full potential as far as business goals and objectives are concerned. Different countries and regions present diverse factors related to economic, social as well as political contexts that directly and indirectly determine the decisions that people and Companies (organizations) make to enter in the diverse markets. Also, determine the strategies that they would use in the diverse markets and regions in order to enhance their business goals. Business analysts, hence, have to be acquainted with knowledge and skills that can help them correctly analyze and interpret the diverse situation and enable them to project about the future to help companies and individuals. It helps avoid the possible loss that could result from wrong interpretation and analysis that might prove to be challenging to companies and individuals entering a different country or region for business. However, this paper presents the political risks that a company could face in Portugal.
Portugal is a member of the European Union that has partly contributed to the political decisions and actions that the leadership of the country takes. A semi-presidential parliamentary democracy is a political system that is found in Portugal. The president heads the state with limited power while the government plays the key executive role. The president appoints the prime minister. The president himself must come from the party that gets the most votes during a general election. The parliamentary term is four years while that of the president is five years. There are limited political parties such as Social Democratic (PSD) and Christian Democratic (CDS) and PS among others. The political ideologies are dominated by sociologists and communists that have dominated the political parties prompting the formation of a coalition to form governments such as the current centre-right coalition (Silveira, 2016). The last election embraced transparency and democratic processes where citizens have actively participated in election processes that have enhanced peaceful election processes increasing the stability of Portugal as a country as well as the European Union at large. The enhanced democratic processes have resulted in competitive politics that has eliminated dominance of one party in the political processes and, therefore, encouraged the formation of a coalition to form governments. It, consequently, enhances transparency and accountability in the coalition government as well as encouraging dialogue that brings people together making the country stable political wise. Such competitive politics, thus, ensures transparency is encouraged as well as diverse opinions and views about issues that characterize many democratic processes. The political risk that companies would face in Portugal related to conflicts and violence as a result of political processes such as elections are minimal as it has a stable electoral process that is transparent as well as stable political parties directed by philosophies. The democratic process has also allowed citizens to express their decision and ideas on issues of importance including through mass movements and demonstration (Pinto, 2011). The political parties that formed the government entered into bailout program or financial assistance package with the European Commission that tried to revive the Portugal economy that has determined the political decisions by the political players and the citizens at large.
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The Human rights are also respected in the Portugal environment. The country has ratified many international human rights treaties and conventions and is an active member. It guarantees employees the right to strike, enter in trade unions and right of assembly are guaranteed by the constitution and respected by government agencies such as law enforcement provided they follow the required procedures and processes. The status, as a consequence, encourages fairness and justice environment not only for business to operate but also employees. It, thus, presents a favorable environment for business competition among others issues that determine company decisions to venture and invest in Portugal. The rights have shaped the labor concerns encouraging justice and fairness.
Bribery and corruption are also minimal and are illegal in Portugal. A recent poll by Transparency International indicated that the corruption claims had increased in the recent times especially in the moments when the economy was doing badly. The country had tried hard to encourage transparency and accountability that reduces and eliminates incidences of corruption (Silveira, 2016). Portugal is a member of the Group of States against Corruption (GRECO) that is part of the Council of Europe. The country commitment against corruption and bribery, therefore, encourages transparency and justice that is a good environment for business that reduces the political risks.
The threat of terrorism is in every part of the world as recently proved. Portugal, however, is not considered a major terrorist target, but the Portuguese authorities are always vigilant and active cooperating with other international bodies that are concerned with the subject. The status, consequently, makes it easier and encourages business reducing the political risks.
The Portuguese Institute of Industrial property (INPI) holds the responsibility of protecting intellectual property rights at national and international levels. It provides directions and guidelines in registration and monitoring of all aspects related to the intellectual property rights such as trademarks, patents and trade secrets among others (Pinto, 2011). It has also actively participated in the formulation of laws that enhance and encourage trade. It has acted together with the legislative part to formulate foreign policies and tariffs as well as products safety and environmental laws that guide business and companies operating in Portugal.
In conclusion, the noted political risks in Portugal encourages and favor business as they present fewer risks that can affect the companies that establish their business in Portugal. Also, Portugal as a member of European Union also expands the market and business opportunity that company can experience as a result of operating In Portugal. The EU encourages political stability and economic development amongst members that directly intervenes as noted in the austerity and financial assistance given to Portugal by the European Commission. Companies that think to invest in Portugal, hence, should not hesitate because of the stable political situation with less risk as well as other benefits as noted among the European Union members.
References
Pinto, A. C. (2011). Contemporary Portugal: Politics, Society and Culture. Boulder [Colo.: Social Science Monographs.
Silveira, P. (2016). To Be or Not To Be A Politician: Profile and Governmental Career of Portuguese Junior Ministers. Revista Española De Ciencia Política , (40), 13-38.
