Asked by Alejandro Arias on Jun 10, 2024
Verified
__________ is the potential loss of one's investment in or managerial control of a foreign asset due to changes in the host country's political environment.
A) Corporate malfeasance
B) Political instability
C) Political risk
D) Economic instability
E) Sociocultural risk
Political Risk
The possible loss of investment or control over a foreign asset because of political changes in the host country.
Host Country
The country in which a multinational company operates a facility or office, outside of its home country.
Managerial Control
Managerial control involves processes and systems that an organization uses to regulate activities and achieve its objectives by guiding employee behavior.
- Understand the concept of political risk and its impact on international business operations.
Verified Answer
PT
Ph??c Th?nhJun 11, 2024
Final Answer :
C
Explanation :
Political risk refers to the potential loss investors or companies face due to political changes or instability in a country. This can include changes in government, legislative bodies, other foreign policy makers, or military control that could result in unfavorable conditions for foreign investors or businesses.
Learning Objectives
- Understand the concept of political risk and its impact on international business operations.