International economic and political risks (Similarities and differences)

The international economic risk is associated with monetary issues. How much does a firm invest in a part of the world they want to expand into? How much profit do they intend to gain from the move? Is the decision they make going to be successful or will it lead them to incur losses? Political risk is the state in which a host country is. Does it offer favorable conditions for business? What is the state of the government-regulated factors of business such as taxes and rules on imports and exports? These are different in that economy is monetary and can be controlled by both the international and local authorities. Political risks involve the host country only and they alone can make things better in their country.

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