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Business continues to face increasing world‐wide political and economic risks, despite signs of a modest economic recovery. This survey of 80 countries shows risks increasing for exporters and financial institutions. However, companies with direct foreign investment will face little increased risk because the desire for new foreign investment will continue to constrain nationalist pressures in most countries. Political violence from terrorist groups, dissidents, and guerrilla forces is not expected to exceed last year's levels. However, the threat of violence from international hostilities is greater for many territorial and maritime disputes.

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