Asked by Kaitlyn Munger on Jun 28, 2024
Verified
The risk related to changes in the value of international assets as a result of governmental actions is called ________________ risk.
A) International.
B) Diversifiable.
C) Purchasing power.
D) Exchange rate.
E) Political.
Political Risk
The risk of loss due to political instability or changes in government policy that can affect investments and business operations.
Governmental Actions
Decisions or interventions by government agencies that can affect the economy, businesses, and various segments of society.
International Assets
Financial or physical assets located in different countries from where an investor or company is based, adding diversification to an investment portfolio.
- Understand the concept of political risk and its impact on international assets.
Verified Answer
Learning Objectives
- Understand the concept of political risk and its impact on international assets.
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