The most appropriate response to political risk is to avoid entering a risky overseas market.

Question

Quizplus · Accepted Answer

While avoiding entering a risky market may be one way to mitigate political risk, it is not the only response. Other responses include conducting thorough risk analysis, developing contingency plans, and diversifying operations across multiple markets. In some cases, the potential benefits of entering a risky market may outweigh the risks, and companies may choose to enter anyways. Therefore, the best response to political risk will depend on the company's individual circumstances and risk tolerance.

The Most Appropriate Response to Political Risk Is to Avoid