Understanding the ______ risk involved is a key element in the decision to do business in a foreign nation.
A) financial
B) economic
C) social
D) political

Question

Quizplus · Accepted Answer

Political risk refers to the risk of loss caused by the actions of governments, such as changes in laws, regulations, or taxation policies, expropriation of assets, or even political instability. It is essential to understand political risk when doing business in a foreign country as it can significantly affect the financial and economic risks involved.

Understanding the ______ Risk Involved Is a Key Element in the Decision