The risk that a new government regulation could damage business activity in a country is considered

Question

Quizplus · Accepted Answer

Political risk refers to the potential disruption or negative impact on an organization's operations and/or profitability due to changes in government policy, laws, or regulations. Thus, the risk of new government regulations damaging business activity fits the definition of political risk. Economic risk refers more broadly to the potential impact of economic factors such as inflation or recession on an organization's financial performance. Exchange rate risk refers specifically to the potential impact of fluctuations in currency exchange rates on an organization's international transactions. Global risk refers to a wide range of potential risks that can affect organizations operating in multiple countries or regions.

The Risk That a New Government Regulation Could Damage Business