__________ refers to the possibility of expropriation of assets,changes in tax policy,and the possibility of restrictions on foreign exchange transactions.

Question

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Political risk is the risk associated with the possibility of adverse developments in a country's political or legal environment, such as expropriation of assets, changing tax policies, and restrictions on foreign exchange transactions. This risk can have a significant impact on international investments, particularly in emerging markets or politically unstable countries. Default risk (A) refers to the risk that a borrower may default on their debt obligations, while foreign exchange risk (B) is the risk associated with fluctuations in exchange rates that can have an impact on the value of international investments. Market risk (C) is the risk associated with fluctuations in the overall market, such as changes in interest rates or economic indicators. None of these other options fully encompass the risks associated with political instability in a particular country.

__________ Refers to the Possibility of Expropriation of Assets,changes in Tax