Political Risk Is Defined as an Organization's Risk of _____

question 1

Multiple Choice

Political risk is defined as an organization's risk of _____ due to politically based events or actions by host governments.

• A) loss of assets
• B) managerial control
• C) earning power
• D) all of these
• E) managerial control and earning power only

---

Definitions:

Negative Externalities

Costs suffered by a third party as a result of an economic transaction, which are not reflected in the transaction's price.

Taxed

The act of imposing financial charges on individuals or entities by a governmental organization in order to fund public spending.

Coase Theorem

A principle that suggests that if property rights are well-defined and transaction costs are negligible, parties will negotiate to correct externalities without the need for government intervention.

Externality Problems

Issues arising when the actions of individuals or firms have effects on third parties that are not reflected in market prices.