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

Question

Quizplus · Accepted Answer

The fear of sabotage or government takeover of the plant is related to political risk, which refers to the potential for political decisions, events or conditions in a foreign country to affect the operations and profitability of a company operating in that country.

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