Explain the political risk related with making fdi, Financial Management

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What factors would you consider in evaluating the political risk related with making FDI in a foreign country?

Answer: Factors to be considered as follow:

a) The host country's political and government system;

b) Track record of political parties and their relative strength;

c) The degree of integration into the world system;

d) The host country's ethnic and religious stability;

e) Regional security; and

f) Key economic indicators.

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