Based on interviews with 59 businessmen, their advisers, and U.S. government officials, this report focuses on the problems of U.S. businesses that run overseas operations in high-risk environments, particularly Latin America. These problems include operating in a climate of instability, high costs of property damage, ransom payments, and expenditures for security purposes; and managerial and technical adjustments that often lower productivity and hamper quality control. Despite the hardships, most businesses do not pull out of a country as a result of terrorist threats or attacks, but cope with them as with other acts of violence.
This report is part of the RAND Corporation Report series. The report was a product of the RAND Corporation from 1948 to 1993 that represented the principal publication documenting and transmitting RAND's major research findings and final research.
Permission is given to duplicate this electronic document for personal use only, as long as it is unaltered and complete. Copies may not be duplicated for commercial purposes. Unauthorized posting of RAND PDFs to a non-RAND Web site is prohibited. RAND PDFs are protected under copyright law. For information on reprint and linking permissions, please visit the RAND Permissions page.
The RAND Corporation is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors.