Question

In: Finance

Political actions concerning tariffs and trade agreements are asource of market risk True or False?

Political actions concerning tariffs and trade agreements are a source of market risk True or False?

Solutions

Expert Solution

Political actions concerning tariffs and trade agreements are a source of market risk.

The statement is TRUE.

A risk that affects all the businesses in a country is called market risk. Any political actions such as raising tariffs or exiting trade agreements seen as negative for the businesses and hence they are a source of market risk.


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