Análisis PESTEL: Político, económico, social, tecnológico, medio ambiental y legal.

As part of the legal and regulatory factors to put into consideration is the legal protections or guarantees provided to foreign investors in the local market. Legal guarantees against the compulsory acquisition or arbitrary revocation of the property rights of foreign investors boost investors' confidence in the local jurisdiction.

Negotiating contracts in high-risk regions requires a careful and strategic approach. Here are below some key considerations to keep in mind: 1-Risk Assessment 2-Legal Framework 3-Due Diligence 4-Flexibility and Contingency Plans 5-Dispute Resolution 6-Insurance and Guarantees 7-Cultural Sensitivity 8-Communication It’s also important to have an effective contract risk mitigation strategy, which includes identifying, evaluating, and limiting exposure to risks across your organization

At this stage, the deal team is perhaps already well acquainted with their counter parts, and may have visited the high-risk country on a few occasions already. These experiences might bias the risk assessment. As such, the risk assessment concerning cultural and ethical risks should be carried out in the initial stages of the process, well in advance of any negotiations or visits taking place. This assessment should include other experts within the organization, who can provide different perspectives and viewpoints into the assessment. An organizations code of conduct and other related policies should be consulted. The assessment should then be revisited once the negotiations are in the closing stages, or when a dilemma is faced.

In my opinion, a contingency plan or way out needs to be addressed in case of contract negotiation for high-risk zones. A successful negotiation emphasizes a win-win situation for the parties involved in it. If the risks cause any loss to any party nothing can be done if there is no clear indication of a contingency plan or way out in time of contract negotiation.