Economic Systems & Global Business Risks|
Questions Verified and Provided with A+ Graded
Rationales Latest Updated 2026
What is the definition of country risk?
Country risk refers to the potential for losses due to political or economic instability in a
country.
What are the two types of country risks?
Political risk and economic risk.
What are the two sources of country risks?
Internal factors (domestic issues) and external factors (global influences).
What are the types of political systems?
Totalitarianism, Socialism, and Democracy.
What is the relationship between economic and political freedom?
Economic freedom often correlates with political freedom, as both are essential for a
functioning democracy.
What is the rule of law?
The principle that all individuals and institutions are accountable to laws that are publicly
promulgated.
What are the types of legal systems?
Common law, Civil law, and Religious law.
What does government takeover of corporate assets include?
Confiscation, Expropriation, and Nationalization.
What are embargoes and sanctions?
Embargoes are official bans on trade with specific countries, while sanctions are penalties
imposed to influence behavior.