Prism Inc., a German athletic footwear company, had to close its manufacturing plant in Nibellus, a country in East Asia, after a war broke between ethnic groups in Nibellus. Given this information, it can be said that Prism Inc. was subjected to _____.

Question

Quizplus · Accepted Answer

Macro political risk refers to political risks that affect all foreign firms operating in a particular country or region. The closure of Prism Inc.'s manufacturing plant due to a war in Nibellus is an example of a macro political risk, as the war is a country-wide issue likely affecting all businesses operating there, not just Prism Inc.

Prism Inc, a German Athletic Footwear Company, Had to Close Its