Which of the following is not an example of political risk?
A) Government may impose taxes on a subsidiary.
B) Government may impose barriers on a subsidiary.
C) Consumers may boycott the MNC.
D) Consumers' income levels may decrease, thus decreasing consumption.

Question

Quizplus · Accepted Answer

Decrease in consumers' income levels and resulting decrease in consumption is an example of economic risk, not political risk. Political risks are related to government actions or events such as expropriation, nationalization, changes in regulations, and political instability.

Which of the Following Is Not an Example of Political