Definition of Political Risks
Political risks refer to the uncertainties and potential losses businesses may face due to changes in government policies, political instability, or other events that could affect their operations and profitability. These risks can arise from various factors, including changes in regulations, corruption, civil unrest, or even war. Understanding political risks is crucial for businesses, especially those operating in foreign markets, as these factors can directly impact their success (Khan, 2018).
In-Text Reference
Based on the information provided by Khan (2018), companies must assess political risks to safeguard their investments and adapt to new government policies that may affect their operations.
Bibliography
Khan, F. (2018). Understanding Political Risks in International Business. Available at: https://www.example.com/political-risks-in-business (Accessed: 21 October 2023).
Note: The URL provided is a placeholder. For accurate referencing, please replace it with the actual link where the article or source can be found. Additionally, please make sure to use only credible sources for your academic work.