Which of the following is an important type of risk in an international capital budgeting context?
A) business cycle risk
B) political risk
C) appropriation risk
D) default risk

Question

Quizplus · Accepted Answer

Political risk refers to the risk of changes in government policies, instability, or other political factors that may affect business operations and investments. This risk is particularly significant in international capital budgeting because the political and economic environment varies greatly from country to country. The other choices, while important, are not as specific to the international context.

Which of the Following Is an Important Type of Risk