An example of a political risk is
A) Expropriation of assets
B) Adverse change in tax rules
C) The opposition party being elected
D) Expropriation of assets and Adverse change in tax rules

Question

Quizplus · Accepted Answer

Both expropriation of assets and adverse change in tax rules are examples of political risk. Expropriation is the act of a government taking control of privately owned assets without the owner's consent. Adverse change in tax rules refers to a change in tax laws or regulations that negatively impacts a company's profitability or operations. Both of these risks are directly related to government actions and policies, making them political risks. The option C, the opposition party being elected, is a political event that could potentially lead to policy changes or shifts in government approach, but it is not a specific example of a political risk.

An Example of a Political Risk Is