Political Risk

Summary of Political Risk

An economic risk assumed by foreign creditors that political or military conditions in a debtor's country may preclude settlement of the obligation when due.

(Main Author: William J. Miller)

Political Risk and International Trade Economy

In relation to international trade economy, Christopher Mark (1993) provided the following definition of Political Risk: The risk, borne by an exporter or international lender, that settlement of the importer's or borrower's obligation may be precluded by political or military conditions in a foreign country .See also commercial risk.