Define the following types of political risk: a. Adverse regulatory change b. Breach of contract c. Expropriation
Question:
Define the following types of political risk:
a. Adverse regulatory change
b. Breach of contract
c. Expropriation
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a Adverse regulatory change also termed regulatory risk refers to changes in host country regulations that alter operating conditions of investments As noted we refer to adverse changes as few multinationals enjoy changes that reduce cost or operating requirements once the investment has been made and the investor has lost much of its negotiating strength There are few limits to the nature of these regulation ...View the full answer
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Related Book For
Multinational Business Finance
ISBN: 978-0134796550
15th edition
Authors: David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett
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