What is Political Risk and what are the main types of Political Risks?

Political Risk: Possibility of an unexpected politically-motivated event affecting the outcome of an investment

Types of Political Risks:

1. Exproriation/confiscation with a purpose of establishing social security

2. Terrorism

3.Selective Intervention: Tariffs; exports; Taxation; Investment Restrictions; Operating Restrictions; Non-Neutrality of Legal Environment; Differential Regulations for Foreigners

4. Cross-fire problems: Consumer Boycotts; Human Rights; Environment Concern; Disregard of International Agreements