From a company-owned plant in Turkey, Vicky manufactures speciality apparel items for her small business, Garments of Eden.Because of overseas military operations in the region, Vicky fears that her plant may be sabotaged or that the local government may attempt to take over the facility.Specifically, her fears are about:

Question

Quizplus · Accepted Answer

Vicky's fears are related to political risk, which refers to the potential for government actions or political instability to negatively impact business operations. Economic risk, on the other hand, typically refers to general economic conditions such as inflation or recession, while exchange rate risk relates to the potential for fluctuations in currency exchange rates to affect business profitability.

From a Company-Owned Plant in Turkey, Vicky Manufactures Speciality Apparel