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Impact of Popular Uprising on Multinational Companies

The political risk in these countries has led to deteriorating financial condition and unavailability of credit. This scenario has brought forward payment risks for multinational companies which are operating in Mthe middle East and North African region. The instability in MENA has created disruption in the oil industry and boosted the prices of petrochemical products. The risk of disorder in those countries has harmfully affected the supply chain and energy production companies (Dun amp. Bradstreet Limited, 2011).
The uprising in Tunisia has increased the business risks. During the protests, many business enterprises had shut down their operations. The retailing businesses were affected by raiding and the tourism industry had faced huge losses as travelers escaped from the country. Due to the uprising, the standard capacity consumption in the manufacturing industry reduced to 52.9%. Many banks were demoted by rating agencies and the credit access became limited in the global market (Dun amp. Bradstreet Limited, 2011).
Egypt has followed a path similar to Tunisia. In February 2011, a series of revolutions occurred in many countries of the Middle East, and Libya was surrounded by an aggressive spiral of protests and it led to civil war. Due to the instabilities in Libya, Egypt and Tunisia the prices of oil reacted quite rapidly. It has been observed that further uprising will increase the price of oil even more and it can affect the business and international economy (Dun amp. Bradstreet Limited, 2011).
The impact of the popular uprising has affected the business and investment of many multinational companies.nbsp.