Risk associated with unanticipated actions by the host country government or the courts is called:

Question

Quizplus · Accepted Answer

Political risk encompasses the potential for unexpected actions by a host country's government or judicial system to negatively impact a foreign investor's operations or investments. Economic risk refers to the possibility of financial losses due to fluctuations in exchange rates or other economic factors, while transaction risk is associated with the possibility of losses due to the failure of a transaction to be completed as expected. Therefore, the correct answer is C - political risk.

Risk Associated with Unanticipated Actions by the Host Country Government