Political risk is much greater in developing and emerging countries for all of t
ID: 1140912 • Letter: P
Question
Political risk is much greater in developing and emerging countries for all of these except:
Their economies are much more vulnerable to shifts in the ruling government.
These countries lack stable institutions that can withstand changes in government.
These countries have weak constitutions susceptible to changes that fail to protect their citizens.
They always follow the rule of law.
Their economies are much more vulnerable to shifts in the ruling government.
These countries lack stable institutions that can withstand changes in government.
These countries have weak constitutions susceptible to changes that fail to protect their citizens.
They always follow the rule of law.
Explanation / Answer
Option (4).
A country that follows the rule of law is more stable and less risky. Emerging and developing countries often deviate from rules of law, and therefore are less stable and more risky.