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Identify the Incorrect Statement Regarding Political Risk

Question 57

Multiple Choice

Identify the incorrect statement regarding political risk.


A) It can be defined it as the likelihood that political forces will cause drastic changes in a country's business environment that hurt the profit and other goals of a business.
B) It tends to be greater in countries where the underlying nature of the society makes the likelihood of social unrest high.
C) When political risk is high,there is a high probability that a change will occur in the country's political environment that will endanger foreign firms there.
D) In most cases,political change may result in the expropriation of foreign firms' assets.

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