Which of the following is not an example of political risk?
A) Government may impose taxes on subsidiary
B) Government may impose barriers on subsidiary
C) Consumers may boycott the MNC
D) Consumers' income levels will decrease, thus decreasing consumption.

Question

Quizplus · Accepted Answer

Decrease in consumers' income levels and consumption is an economic risk, not a political risk. Political risk refers to the risk of change in political policies or regulations that can adversely affect the MNC's operations and profitability in a host country. Options A, B, and C refer to examples of political risk.

Which of the Following Is Not an Example of Political