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The Difference Between Political Risks and Economic Risks Is That

Question 20

Multiple Choice

The difference between political risks and economic risks is that

A) political risks stem from instability or weakness in national governments while economic risks stem from the stability of a country's monetary system, economic and regulatory policies.
B) political risks stem from stability in foreign business and economic risks stem from an excess of property right protections.
C) political rights stem from hostility to foreign business while economic risks stem from the instability of the monetary system.
D) political risks stem from risks due to exchange rate fluctuations and economic risks stem from hostility to foreign business.
E) political risks stem from stability of a country's monetary system and economic risks stem from instability in national business.

Correct Answer: