Politcal

The concept of political risk in international business is based on the existence of possible threats to the firm from political instability and lawlessness in the area of investment. Once a firm leaves the basically standardized world of domestic business law, the global environment is much more fluid; most states can use many levers of power to extract more resources from the investing firm. 

The reason behind the embargo is that the European Union fears that the dictatorship in Burma is becoming to violent and brutal. 

They fear that if the Burmese carry on recieving weapons, then they could decide to invade a country, jeopardising EU treaty agreements and negotiations. The reason behind the embargo is that the European Union fears that the dictatorship in Burma is becoming to violent and brutal. They fear that if the Burmese carry on recieving weapons, then they could decide to invade a country, jeopardising EU treaty agreements and negotiations. The Iranian currency has fallen during the past year and has lost a third of its value which has sparked street protests. US official and also other Western officials blame the drop on combination of economic mismanagement as well as sanctions. 

The UK has adopted into their legislation the European Unions decision to adopt an arms embargo on Burma. This means that it is illegal to export arms and related material - ie military weapons and goods, to Burma. The UK has interpreted this as covering all goods on the UK Military List.

http://www.ehow.com/about_6363401_political-risk-affect-international-business_.html