As a group we have collectively decided that our business of choice that we will hypothetically focus on is a commercial financial intermediary within the country of Jordan. Because money is the means of trade between individuals and societies as a whole, banks are the central necessities for individuals and other companies. The task of our term paper is to evaluate influence of different risk factors on the chosen industry. Probably one of the most important is an influence of the political factors. These factors are the following the system of government, level of political stability, incidence of corruption, laws and government regulations regarding investment and trade. First of all, we have to evaluate the political risk factors in the context of geopolitical location of the country. As you know the country is located on the East Bank. The countries neighbors are the following Saudi Arabia, Iraq, Syria and Israel. The situation on the East Bank is constantly quite strained. Our opinion can be proven with the following words. George Bushs Iraq invasion, a bloody insurgency and civil war, the Israeli invasion of Lebanon, the second Palestinian intifada and collapse of the Oslo/Madrid peace process, Al Qaedas terrorist outrages, the