Political risk analysis in the regional agricultural sector: the case of dairy in Brazil
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2022-05-13
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Casarões, Guilherme Stolle Paixão e
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The discussion on the performance of market segments many times leaves behind a few factors that can impact it. The analysis of risk in business is common and analyzing what is project loss if some events happen is not a new factor. But the analysis of the exposure of a business to risks that come from the political sector is often neglected. Therefore, this study has the purpose of analyzing the risks that come from the Brazilian political sector, further on called political risk, into a specific sector of the economy. The study is made by looking at trade within the Mercosur economic block, more specifically the trade of dairy products. This trade is made from two countries, Argentina and Uruguay, which exports its exceeding production to Brazil. In this context, this research looks at what is the risk present in this specific sector and how can the player within it manage and mitigate them to prevent them from economic failure.