Abstract
Chapter 4 explores several frameworks that classify and derive implications for nonmarket strategy. It begins by explicating the importance and dynamics of uncertainty and then describes and defines the different levels and types of policy and regulatory uncertainty in the political and social environment. It shows how companies can make the most of available options by building on research into strategy under uncertainty to classify different types of policy uncertainty and the strategies best tailored to those situations, including scenario planning, real options modeling, and others. The chapter also explores how uncertainties in international markets—particularly in emerging markets—present especially challenging situations. It draws upon diverse examples to reveal what works and what does not work when a business expands its geographic horizons.