Firms operating in democracies almost never confront political risk.

Question

Quizplus · Accepted Answer

Firms operating in democracies can still face political risk, especially in cases where there may be changes in government policy or regulations that could negatively impact their operations. There can also be factors such as protests, social unrest, or corruption investigations that may affect their business operations. Firms operating in democracies can still face political risk, such as changes in government policies, regulations, or leadership, public opinion or sentiment, and election results.

Firms Operating in Democracies Almost Never Confront Political Risk