good indicator of political risk is

Question

Quizplus · Accepted Answer

Capital flight is a good indicator of political risk because if investors and businesses feel that a country's political environment is unstable or risky, they may pull their money out of the country, causing a decrease in capital inflows and an increase in capital outflows. This can not only harm the country's economy, but also indicate a lack of confidence in the government and potentially lead to further political instability. Therefore, the seriousness of capital flight can be a useful indicator of the level of political risk in a country.

Good Indicator of Political Risk Is