This book is about political risk for multinational companies. It describes and analyses the complex, conflictual relationships between politics and international business. First, a theoretical framework is meticulously constructed. Second, a new dataset on political risk is presented and analysed. Third, a statistical investigation of the relationship between risks and the location decisions of multinationals is performed. Eye-catching examples of political risk phenomena -- such as kidnappings, nationalisations and armed conflicts -- are presented and commented upon throughout the text. The comprehensive literature review, the clear organisation of the text, its broad focus and the many illustrative real-world examples make the book especially useful as a textbook for relevant courses. Other readers may draw valuable lessons from this book too, including business managers, government officials, political risk analysts and insurers and, more broadly, all students of global affairs and international business.