Political Risk as a Strategic Instrument for Multinationals: the internationalization of Chinese companies in the Brazilian oil sector (2009-2016)
The internationalization of companies is a process that has been consolidated, especially after significant changes in society in the 20th century, resulting from the advance of globalization. Among these companies, the National Oil Companies (NOCs) seek to internationalize to guarantee the energy security of the countries. However, this movement is challenging, due to the risks of this operation, such as political actions that could affect the process and result in financial losses for these companies. In this sense, the research aims to verify between 2009 and 2016, whether there was any type of political risk assessment by the Chinese NOCs when high investments were made in the Brazilian oil sector. The hypothesis is that China, like most Western countries, conducts political risk analysis, especially in volatile markets such as oil. The objective of the research is to identify, within this time frame, possible scenarios where the main risks occurred and transposing the impact of these changes on the behavior of Chinese investment in this sector. To provide a theoretical basis, reports from specialized agencies, analytical research in the sector and structuring academic texts are used, thus helping to awaken an analysis of this topic that is still little debated. The results achieved show assessments carried out of political risk in this sector, showing how this has shaped their business strategies in companies over the years.