Political risk that affects all firms in a country is referred to as ________.

Question

Quizplus · Accepted Answer

Macropolitical risk affects all firms in a country and is related to the overall stability and security of the country's political and economic environment. Examples include changes in government policy, civil unrest, and acts of terrorism. Micropolitical risk, on the other hand, affects specific industries or companies and is more related to regulatory changes and local political issues. Inclusive and exclusive political risk are not commonly used terms in the field of international business.

Political Risk That Affects All Firms in a Country Is