Asked by Nicole Mowatt on May 26, 2024
Verified
Political risk is the potential loss in value of a foreign investment due to instability and political changes in the host country.
Political Risk
The potential loss in value of a foreign investment due to instability and political changes in the host country.
Foreign Investment
Capital investment made by one country into businesses or assets in another country.
- Comprehend the effect of political instability on the valuation and functioning of foreign investments.
Verified Answer
AW
Avery WeznerJun 01, 2024
Final Answer :
True
Explanation :
Political risk is the potential loss in value of a foreign investment due to instability and political changes in the host country. This can include changes in government policies, social unrest, and conflict.
Learning Objectives
- Comprehend the effect of political instability on the valuation and functioning of foreign investments.
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