ABSTRACT
Political risk has long been an important consideration in international business decisions. Although there is no consensus as to the exact definition of political risk, there is agreement on the types of situations that involve political risk. Basically, political risk refers to those political and social developments that can have an impact upon the value or repatriation of foreign investment or on the repayment of cross-border lending. These developments may originate either within the host country, in the international arena, or in the home-country environment.
