Country and Political Risk Analysis of Spanish Multinational Enterprises Using Exploratory Projection Pursuit

Abstract

As part of a multidisciplinary research project on relevant applications of Exploratory Projection Pursuit, this study sets out to examine levels of country and political risk that are assumed by a sample of Spanish Multinational Enterprises (MNEs). It analyses information pertaining to points such as decisions over the localization of subsidiary firms in various regions across the world, the importance accorded to such decisions and the driving forces behind them. The specific variables under study are economic freedoms, perceived levels of corruption and the constraints affecting the host governments in a sample of 1773 Spanish MNE subsidiaries throughout the world. Several neural projection models are applied, and we are able to conclude that these connectionist techniques help analyse the relevant data to identify the internationalization strategies of Spanish MNEs, their underlying motives and the goals they pursue.