The likelihood that a society will undergo political change that negatively affects local business activity is called ________.

Question

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Political risk refers to the possibility that a society will experience political changes that could negatively impact local businesses. This type of risk could include changes in government policy, civil unrest, or even war. A company must take these factors into consideration when making decisions about investing in a particular region or country. Economic risk refers to the possibility that economic factors, such as inflation or recession, could negatively impact business activity. Investment risk is the possibility that an investment will decrease in value, while cultural risk refers to the challenges a company may face when operating in a foreign culture.

The Likelihood That a Society Will Undergo Political Change That