Economics Risk And Return Questions
Political risk refers to the potential negative impact on investments or business operations due to political factors such as changes in government policies, regulations, instability, conflicts, or social unrest in a particular country or region. It includes the uncertainty and unpredictability of political events that can affect the profitability, stability, and security of investments. Political risk can arise from factors such as changes in government leadership, shifts in political ideologies, nationalization of industries, expropriation of assets, trade restrictions, corruption, and political violence.