What are the five main types of political risk? How might each affect international business activities?© BrainMass Inc. brainmass.com October 10, 2019, 5:15 am ad1c9bdddf
Vorton (2010) specified the types of political risk as:
- Conflict and Violence
- Terrorism and Kidnapping
- Property Seizure
- Policy Changes
- Local Content Requirements
Conflict and violence discourages the growth of international business as consumers and investors will move to more conflict-free and violence-free areas.
Terrorism and kidnapping is bad for business. Many foreign investors are targets for kidnapping since they have the resources to pay the ransom.
Property seizure is ...
The solution identifies the main types of political risks.