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Political Risk Insurance |
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Political risk insurance The risk associated with possible negative events such as expropriation of assets, changes in tax policy, restrictions on the exchange of foreign currency, or other changes in the business climate of a country. Political Risk Insurance An insurance policy protecting the policyholder from the risk that a foreign government will significantly alter its policies or other regulations so that it results in a loss for one's investment. It may also cover the risk that a nation will refuse to comply with an agreement to which it is a party, or that political violence will hurt an investment or business. For example, if one exports goods to a foreign nation, and that nation elects a new government that enacts protectionist tariffs, this will negatively impact the export business. Political risk insurance may be tailored to the policyholder's specific needs. How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
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