Political risk is the risk associated with possible actions by a sovereign nation to interrupt or change the value of cash flows accruing to foreign investors.

Name: Political risk is the risk associated with possible actions by a sovereign nation to interrupt or change the value of cash flows accruing to foreign investors.
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Question

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Political risk relates to the potential impact of political decisions on cash flows generated by foreign investors, making it a real and significant risk in international business.

Political Risk Is the Risk Associated with Possible Actions by a Sovereign