Risk, which one may define as the probability that expected benefits will not be received, is inherent in any investment. Traditionally, business analysts have divided the risks faced by international investments into two categories: commercial risks and political risks. Commercial risks are those associated with normal economic activities, such as fluctuations in commodity prices, the failure of a new technology to perform as expected, or the advent of a new competing product that makes the investor’s product obsolete. Political risks, on the other hand, are...
Users without a subscription are not able to see the full
to access all content.