Harmon Clothing has a production facility located in Venezuela.Recently, Harmon has been unable to arrange for overseas loans due to the burdensome regulatory policies of the Venezuelan government.Which type of political risk is Harmon most likely experiencing?

Question

Quizplus · Accepted Answer

Systemic political risk involves changes in policies or regulations that affect all companies operating within a country. Harmon's inability to secure overseas loans due to the Venezuelan government's regulatory policies is an example of systemic risk, as these policies likely affect all businesses in the country, not just Harmon.

Harmon Clothing Has a Production Facility Located in Venezuela