ABB must deal with several major risks before entering emerging economies several major risks. Governance and policy making mostly cause political risks. Some of the emerging markets are politically influenced therefore making them unpredictable for foreign investors. ABB must deal with the ever-changing taxes, owing to the political landscape. Furthermore, factors such as corruption or poor corporate governance may proof to be a challenge. Due to shifting political climate in some of the emerging economies, ABB must deal with the prospects of civil disturbance. The major economic risks are unpredictable monetary policies caused by dependence on foreign capital and high inflation. Therefore, ABB needs to have strategies in place while considering the risks mentioned, as they expand into emerging economies.   

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