Because political events can determine the success or failure of an investment abroad, transnational companies must make every effort to analyze political risks as part of the decisionmaking process. "States and Companies," written especially for students of international business and executives of transnational companies, presents a conceptual framework for the analysis of political risk. Although the author focuses his study on the international oil industry, his explanatory model of political risk is applicable to most transnational companies. Lax's study is important because it focuses...