From a company-owned plant in Pakistan, Howard Eden manufactures specialty apparel items for his small business, Garments of Eden. Because of overseas operations of the U.S. military in the region, Eden fears that his plant may be sabotaged or that the local government may attempt to take over the facility. Specifically, his fears are about

Question

Quizplus · Accepted Answer

Political risk refers to the potential for political and government actions to negatively impact a company's operations and profitability. In this scenario, the concern about sabotage or seizure of the plant by the local government is a clear indication of political risk.

From a Company-Owned Plant in Pakistan, Howard Eden Manufactures Specialty