GK
BUSINESS MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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government regulations, foreign influences
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technical failures, not keeping up-to-date with technology
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unemployment rates, interest rates, stock market
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loss of business partners, decrease in customer confidence
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overall system failures, product distribution failures
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Detailed explanation-1: -Geopolitical risk, also known as political risk, transpires when a country’s government unexpectedly changes its policies, which now negatively affect the foreign company. These policy changes can include such things as trade barriers, which serve to limit or prevent international trade.
Detailed explanation-2: -Thus, based on the scenarios, political risks can be divided into two types such as macro risks and micro risks. The macro risk is related to the multinational companies which have businesses in the country and the adverse effects faced by those companies.
Detailed explanation-3: -Political risk may also result from events outside of government controls such as war, revolution, terrorism, labor strikes, and extortion. Political risk can adversely affect all aspects of international business from the right to export or import goods to the right to own or operate a business.
Detailed explanation-4: -Common types of political risks. Expropriation/government interference. Transfer & Conversion.