Political risk has been defined as the likelihood

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Political risk has been defined as the likelihood that a society will undergo political change that negatively affects local business activity. Which of the following is not an example of political risk?

a) the foreign government has forced the transfer of the company's assets to the government without compensation. The former owners have no legal basis for requesting compensation or the return of the assets

b) foreign government has made a sudden policy change by restricting ownership to domestic companies or limits ownership by non domestic firms to a minority stake

c) foreign government has forced the transfer of the company's assets to the government with compensation. There's no framework for legal appeal, and compensation is far below market value

d) a multinational company has increased its prices to meet the increased cost of operation overseas, which led to the loss of a huge market share due to intense competition that created a major Financial loss

e) the foreign government has announced new laws stipulating that a specified amount of a good or service, which is known as local content requirements, must be supplied by producers in the domestic Market.

Reference no: EM131236970

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