An example of a political risk is
A)expropriation of assets.
B)adverse change in tax rules.
C)the opposition party being elected.
D)both the expropriation of assets and adverse changes in tax rules are correct.

Question

Quizplus · Accepted Answer

Expropriation of assets and adverse changes in tax rules are both examples of political risk. Expropriation of assets occurs when a government seizes or nationalizes property or assets belonging to foreign investors. Adverse changes in tax rules can result in increased tax liabilities, which can significantly impact a company's financial performance. The opposition party being elected is not necessarily a political risk but rather a normal part of democratic processes.

An Example of a Political Risk Is