20-10 Adjusting For Political And Economic Risk  The analysis of a foreign investment opportunity includes an assessment of political and economic risk  Political risk is the likelihood that political forces will cause drastic changes in a country's business environment that hurt the profit and other goals of a business  Political risk is higher in countries with social unrest or disorder, or where the nature of the society increases the chance for social unrest  Political change can result in the expropriation of a firm's assets, or complete economic collapse that renders a firm's assets worthless
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