What is the difference between political risk and sovereign risk?
What will be an ideal response?
Answer: Political risk is the possibility of a government adversely affecting the return of a foreign investment or the cash flows of an MNC. Sovereign risk on the other hand is the risk that the government will default on payments of its sovereign debts.
Business
You might also like to view...
The outcome of a decision is often affected by how accurately the problem is defined at the outset
Indicate whether the statement is true or false.
Business
France considers a hostile environment as the only basis for sexual harassment claims
Indicate whether this statement is true or false.
Business