Essay specific features
November 22, 2015
No of pages / words:
8 / 2088
Rating of current essay:
A student-led protest for political change may not change the investment climate at all, while a change in local tax law can erode a firm's profits very quickly. It is the task of the risk manager or company CFO to identify whether a government action poses a threat to a firm's financial well-being.”
Defining Political Risks
There are various definitions to Political Risks:
“In export financing, the risk of loss due to such causes as currency inconvertibility, government action preventing entry of goods, expropriation or confiscation, and war...
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Adverse political actions can range from very detrimental, such as widespread destruction due to revolution, to those of a more financial nature, such as the creation of laws that prevent the movement of capital.
Types of political Risks
In general, there are two types of political risk, macro risk and micro risk...
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