What is the outcome of political factor risk?
Answers
Answer:
BREAKING DOWN Political Risk
Some political risks can be insured against through international agencies or other government bodies. The outcome of political risk could drag down investment returns or even go so far as to remove the ability to withdraw capital from an investment
Explanation:
Political risk is the risk an investment's returns could suffer as a result of political changes or instability in a country. Instability affecting investment returns could stem from a change in government, legislative bodies, other foreign policymakers or military control. Political risk is also known as "geopolitical risk," and becomes more of a factor as the time horizon of investment gets longer. They are considered a type of jurisdiction risk.
Hope it helps. Jai Shri Krishna