Political risk is can be thought of as
A)unanticipated changes in exchange rates.
B)unanticipated actions by the host government affecting the cash flows of a project.
C)unanticipated actions by the World Bank affecting the cash flows of a project.
D)All of these options are correct.

Question

Quizplus · Accepted Answer

Political risk refers to unanticipated actions by the host government that can affect a project's cash flows. While exchange rate changes can also impact a project's financial performance, they are not necessarily related to political risk. Similarly, the World Bank does not have the power to unilaterally impact the cash flows of a specific project, so option C is not a valid definition of political risk.

Political Risk Is Can Be Thought of as