A company's risk of loss of assets, earning power, or managerial control due to politically based events or action by host government is referred to as:
A) MFN.
B) political risk.
C) tariffs.
D) political instability.
E) terrorism.

Question

Quizplus · Accepted Answer

Political risk refers to the risk of loss of assets, earning power, or managerial control due to politically based events or action by host government. This can include expropriation of assets, changes in regulation, nationalization, and other actions taken by the government that can have a negative impact on a company's operations and profitability.

A Company's Risk of Loss of Assets, Earning Power, or Managerial