When conducting global business, companies should attempt to identify the two types of political risk, which are political uncertainty and economic uncertainty.

Question

Quizplus · Accepted Answer

The two types of political risk are actually political uncertainty and policy uncertainty, not economic uncertainty. Political uncertainty refers to the risk associated with political changes that can affect a company's ability to operate, while policy uncertainty involves risks related to changes in laws, regulations, and policies that can impact business operations.

When Conducting Global Business, Companies Should Attempt to Identify the Two