Which of the follow are examples of political risk?
I. The President of the United States decides not to approve a North American oil pipeline.
II. The Governor of the Bank of Canada makes public comments about the high level of personal debt in Canada.
III. The United Nations threatens an embargo against countries developing nuclear weapons.
IV. The Government of Canada passes a law calling for a reduction in government services.

Question

Quizplus · Accepted Answer

I is an example of political risk as it involves a major governmental decision that affects a specific industry. III is an example of political risk because the threat of an embargo can severely impact international trade and commerce. IV is an example of political risk as it involves a change in government policy that can affect businesses that rely on government services. II is not an example of political risk as it is a comment about the state of the economy, and does not involve a specific political decision that could impact businesses or industries.

Which of the Follow Are Examples of Political Risk