An example of a political risk is
A)Expropriation of assets
B)Adverse change in tax rules
C)The opposition party being elected
D)a and b

Question

Quizplus · Accepted Answer

Both A and B are examples of political risks. Expropriation of assets refers to the government taking control of a company's assets without consent or compensation, which can be a significant risk for foreign investors. An adverse change in tax rules can also lead to a decrease in profits, as companies may be subject to higher taxes or face new regulations that make it harder to operate in a particular country. The election of an opposition party may have an impact on policies and regulations, but it is not necessarily a political risk in and of itself.

An Example of a Political Risk Is