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Political Risk and the Multinational Corporation: A Study of the Impact of the Iranian Revolution on Saudi Arabia, Kuwait and the United Arab Emirates

Suleiman K. Kassicieh and Jamal R. Nassar
Management International Review
Vol. 22, No. 3 (1982), pp. 22-32
Published by: Springer
Stable URL: http://www.jstor.org/stable/40227643
Page Count: 11
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Political Risk and the Multinational Corporation: A Study of the Impact of the Iranian Revolution on Saudi Arabia, Kuwait and the United Arab Emirates
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Abstract

The Iranian revolution seems to have produced a mild spill-over effect in the countries under investigation. Perhaps, the leaders' perceptions of this spill-over have been greater than the actual spill-over itself. In all three countries, the regimes have reacted in accordance to their perceptions. Consequently, a dual process of affirming regime control and opening up the political system (or democratizing it) has taken place. Contrary to pessimistic speculation, an Islamic style revolution is an unlikely event in any of the three countries. While there are some similarities between them and Iran, the differences are far greater and seem to preclude the rise of forces in massive revolts as happened in Iran. MNCs activities do not seem to have been curtailed as a result of Iran's revolution.

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