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Asked by Kaitlyn Munger on Jun 28, 2024

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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.
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Zybrea KnightJul 01, 2024
Final Answer :
E
Explanation :
Political risk refers to the risk of loss faced by investors, companies, and governments due to political decisions, turmoil, or instability in a country. This can include changes in government, legislative changes, confiscation of assets, or any action by a government that can affect the value of assets or investments within that country.

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