________ is the risk that a foreign government will place restrictions such as limiting the amount of funds that can be remitted to the parent firm, or even expropriation of cash flows earned in that country.

Question

Quizplus · Accepted Answer

Political risk refers to the potential for a foreign government to impose restrictions, such as those mentioned in the question, that may negatively impact the operations and profitability of a multinational corporation in that country. This risk can be a significant consideration for companies engaging in international business.

________ Is the Risk That a Foreign Government Will Place