When social unrest and disorder in a country causes drastic changes in

QUESTION

When social unrest and disorder in a country causes drastic changes in its business environment that adversely affect the profit and other goals of a business enterprise, the business enterprise is said to be facing which of the following type of risk?

A. Political

B. Demographic

C. Ethical

D. Technological

E. Physiological

ANSWER

A
Political risk has been defined as the likelihood that political forces will cause drastic changes in a country’s business environment that adversely affect the profit and other goals of a business enterprise. Social unrest typically finds expression in strikes, demonstrations, terrorism, and violent conflict.