What are political risks and what are economic risks of operating in an international market?

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What are political and economic risks?

Political risk usually can result from government actions and economic risk can result from changes in the micro or macroeconomic stability. For both of them, MNCs desire less instability.

What are economic risks of operating in an international market?

Specific risks include fluctuations in currency exchange rates, economic or political instability, the potential for trade sanctions or embargo and anything else occurring in the country that could negatively impact the business environment or trade and cash flows in and out of that country.

What is a political risk and what are its example?

Political risk is the risk an investment's returns could suffer as a result of political changes or instability in a country. Instability affecting investment returns could stem from a change in government, legislative bodies, other foreign policymakers or military control.

What are the four types of political risks?

Types of political risk. There are many kinds of political risks which can affect business: potential political and economic instability, labour problems, local product safety and environmental laws.

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