________ involves the changes in a foreign government that can have far-reaching effects on a multinational company.

Question

Quizplus · Accepted Answer

Political risk refers to the potential negative impact on a multinational company's operations or profits resulting from changes in a foreign government or political landscape. This can include policy changes, political instability, or shifts in political ideology that could lead to changes in regulations or punitive measures against foreign companies. Social risk refers to potential negative reactions from local communities or customers based on cultural or social differences, while business risk refers to risks inherent in any commercial venture. Government risk is a broader category that includes political risk but also encompasses other factors such as taxation, bureaucracy, and legal systems.

________ Involves the Changes in a Foreign Government That Can