Which of the following refers to the negative impact of political decisions or events on a multinational's profitability?
A)Economic risk
B)Local government risk
C)Political risk
D)Control risk

Question

Quizplus · Accepted Answer

Political risk refers specifically to the negative impact of political decisions or events on a multinational's profitability. Economic risk relates to the possibility of economic conditions affecting the financial performance of a company. Local government risk relates to the possibility of political and economic intervention by local governments in the operations of a multinational company. Control risk pertains to the possibility of a company being unable to control its operations or prevent losses due to fraudulent or illegal activities.

Which of the Following Refers to the Negative Impact of Political