Which of the following factors in a country is most likely to cause political risk for an international business?
A)presence of more than one ethnic nationality
B)infrequent changes in government and government policy
C)low inflation rate
D)low level of government debt
E)high living standards

Question

Quizplus · Accepted Answer

Presence of more than one ethnic nationality can often cause political instability and unrest, leading to increased political risk for international businesses operating in the country. Infrequent changes in government and government policy (B) may actually reduce political risk, while low inflation rate (C), low level of government debt (D), and high living standards (E) are generally seen as positive factors for businesses operating in a country.

Which of the Following Factors in a Country Is Most