Mauro F. Guillén, Esteban García-Canal and Laura Fernández-Méndez
One of the distinctive features of the international expansion of emerging-market multinationals (EMMs) is that they have been able to successfully enter into and operate in policy unstable countries, an endeavor in which most established multinationals have failed. Building on the case of Orascom Telecom, we argue in this chapter that these companies have not only developed strategies to mitigate policy risk, but also to profit from it, turning risk into something relative. Orascom Telecom invested in risky countries such as North Korea and Algeria, trying to reach win-win agreements with host governments. This case is especially interesting because despite lacking any industry expertise, they managed to become the sixth multinational operator in the telecommunication industry that after their merger with Russian Vimpelcom.