Political risk is the probability that the value of a firm's investment in a foreign country will be reduced by political actions taken primarily, but not exclusively, by the country's government.

Political Risk

The potential for losses or other adverse impacts on business activities due to political changes or instability in a country.

Foreign Country

A nation distinct from one's own country, typically referred to in the context of international trade, travel, or relations.

Political Actions

Activities undertaken by individuals, groups, or governments to influence political decisions, policies, or public opinion.