The potential risk of a host government's implementation of specific rules and regulations that can result in the discontinuity or seizure of the operations of a foreign company is called ________.
A) exchange rate risk
B) financial risk
C) political risk
D) business risk

Question

Quizplus · Accepted Answer

Political risk refers to the potential for disruption or discontinuity of operations due to political factors such as changes in rules and regulations, political instability, expropriation of assets, etc.

The Potential Risk of a Host Government's Implementation of Specific