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Political risk sometimes includes war risk but is otherwise defined as interruption in business or other covered loss due to political conditions, political violence, civil unrest, governmental confiscation of assets, wrongful calling of letters of credit or other similar demands. These can occur whether or not at war.

War risk refers to similar and additional damages arising during wartime and solely out of acts of war.

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How is taxation related to political risk?

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.


What is the difference between an activist and dissident?

An activist is someone who actively works to bring about social or political change, often through organized campaigns and advocacy. A dissident, on the other hand, is someone who publicly opposes or criticizes the government or ruling authority, often at personal risk. While activists may work within existing systems to create change, dissidents may actively challenge or resist those systems.


Why are young eastern European democracies at an increased risk for turmoil during the blobal recession?

Young eastern European democracies are at an increased risk for turmoil during a global recession due to factors such as reliance on foreign investment, high levels of debt, limited economic diversification, and political instability. These countries may struggle to manage the economic challenges of a recession, leading to social unrest, political polarization, and potential erosion of democratic norms.


What are the prons and cons bilateral aid?

Pros of bilateral aid include direct control over how funds are allocated, enhanced relationships between donor and recipient countries, and tailored assistance to meet specific needs. Cons include potential for donor countries to exert undue influence over recipient countries, lack of coordination with other aid efforts, and the risk of aid being used for political purposes rather than development.


What are the advantages and disadvantages of limited and unlimited political system?

Advantages of a limited political system include stability and consistency in governance, protection of individual rights and freedoms, and prevention of authoritarian rule. Disadvantages may include constraints on government action and responsiveness to changing circumstances. Advantages of an unlimited political system may include flexibility and adaptability to evolving challenges, empowerment of the government to take bold actions, and potential for rapid decision-making. Disadvantages may include a greater risk of abuse of power, erosion of checks and balances, and potential for oppression of minority rights.

Related Questions

What are the difference between political risk and country risk?

they are the same


Difference between pooling of risk in shortterm and longterm insurance?

terms period


What Is political risk insurance?

This protects politicians for lawsuits arising from their political jobs. Prices vary by company. Political risk insurance is a type of insurance that can be taken out by businesses, of any size, against political risk—the risk that revolution or other political conditions will result in a loss. As with any insurance, the precise scope of coverage is governed by the terms of the insurance policy.


Difference between traditional life insurance and ULIP policy?

Traditional life insurance gives less return but ULIP may gives high return. Traditional life insurance has no risk factor and ULIP has risk factor.


What is Difference between wholesaler and retailer on the basis risk?

what is Difference between wholesaler and retailer on the basis risk?


What are the key differences between insurance and self-funded healthcare plans?

The key difference between insurance and self-funded healthcare plans is in how they are funded. Insurance plans are funded by premiums paid by individuals or employers, while self-funded plans are funded directly by the employer. In insurance plans, the risk is transferred to the insurance company, while in self-funded plans, the employer assumes the risk.


What is the difference between fully insured and self insured health insurance plans?

The main difference between fully insured and self-insured health insurance plans is in how the financial risk is managed. In a fully insured plan, the employer pays a premium to an insurance company, which then assumes the financial risk for providing healthcare coverage. In a self-insured plan, the employer takes on the financial risk and pays for employees' healthcare costs directly, often with the help of a third-party administrator.


What is difference between active passive risk retention?

Retaining risk passively - Understanding the risk without taking any actions to prevent possible outcomes. Active retention - preparing for risk to happen, having plan for in case it would happen. Some form of self insurance (direct insurance would be form of transferring risk.)


What are the key differences between being self-insured versus fully insured?

The key difference between being self-insured and fully insured is that with self-insurance, the company takes on the financial risk of providing insurance coverage for its employees, while with fully insured plans, the company pays a premium to an insurance company who then assumes the financial risk.


What is difference between constraint an risk?

A constraint is a limitation that is visible and present. The difference between a constraint and risk is that a risk is problem that is not yet seen, or a potential problem.


What is the difference between transaction risk and economic risk?

Transaction is bank risk


Distinguish between co-insurance and reinsurance?

Coinsurance in medical health (casualty) is sharing of costs between insurer and insured, and in property insurance it is were the risk( one risk) is shared between different insurance companies. Reinsurance is insurance for an insurance company, where by an insurance companies seeks for indemnification in case that a stated loss takes place.