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Taxation is related to political risk because of international taxes, which political risk helps to determine.

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10y ago
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3d ago

Taxation policies can contribute to political risk by affecting investor confidence and impacting profitability of businesses. Sudden changes in tax laws or high tax rates can create uncertainty and instability in a country, leading to potential investment retraction. Investors often consider the stability and predictability of a country's tax regime when assessing political risk.

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Q: How is taxation related to political risk?
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Continue Learning about Political Science

What is difference between political risk insurance and war risk insurance?

Political risk insurance typically covers risks associated with government actions such as expropriation or currency restrictions, while war risk insurance specifically covers risks related to war and civil unrest. War risk insurance may include coverage for damage to property and business interruption caused by war.


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Comparative Politics Political Theory International Relations Public Administration Public Policy Political Philosophy Political Sociology Political Economy Political Methodology