Economic risk is the risk associated with the possibility that a national government might confiscate or expropriate assets held by foreigners.

Question

Quizplus · Accepted Answer

Economic risk refers to the potential for a country's economic conditions and policies to adversely affect an investor's returns, not specifically to the risk of asset confiscation or expropriation, which is more accurately described as political risk.

Economic Risk Is the Risk Associated with the Possibility That