Unlike political uncertainty, policy uncertainty:

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Policy uncertainty refers to the risk associated with changes in laws and government rules that directly affect the way foreign companies conduct business. Unlike political uncertainty which deals with the risk of changes in governments that can result from war, revolution, social unrest, or other influential events, policy uncertainty can be minimized by understanding and complying with the laws and rules of the foreign country. Control and cooperation may also help to minimize policy uncertainty. Avoidance strategy may not be a viable option in certain cases as foreign companies need to adapt to the laws and regulations of the country they operate in.

Unlike Political Uncertainty, Policy Uncertainty