Which of the following statements is true about the political risks in a global marketing environment?
A) The political risk of low-income countries is lesser than high-income countries.
B) The more a country is developed, the greater is the political risk.
C) Political risk is a major deterrent for companies that want to invest abroad.
D) A country with high political risks attracts more investors.

Question

Quizplus · Accepted Answer

Political risk refers to the potential loss a company may face due to political instability or changes in government policies. It is a major concern for companies that want to invest abroad because it can lead to financial losses or damage to the company's reputation. Therefore, option C is the correct statement as political risk is a major deterrent for companies that want to invest abroad. The other options are not true as they do not reflect the nature of political risk in the global marketing environment.

Which of the Following Statements Is True About the Political