A political risk that might affect all foreign firms in a host country is termed a ________ risk; a political risk that might affect only an individual firm or specific industry in a host country is termed a ________ risk.

Question

Quizplus · Accepted Answer

A political risk that affects all foreign firms in a host country, such as a change in government or war, is a macro political risk. A political risk that affects only a specific firm or industry, such as a change in regulations or expropriation of assets, is a micro political risk.

A Political Risk That Might Affect All Foreign Firms in a Host