Question

What is the level of political risk is Australia in? Why? Provide at least two examples of an actual political risk that has been in the news in the past 10 years. How can Austraila better manage political risks?

Answer 1

Political risk indicates the risk arises due to the change in the governing body of a country and therefore poses a risk to the citizens of the country,like war,trade losses,expropriation,trade disruptive sanctions,enviornmentally influenced political risks etc,Australia is thebiggest per capita emitter in the developed world and climate change is among the most contentious political issue,The current government budget balance shows a deficitin -2% of GDP which is further fall further due to the covid 19 crisis to -4.5 %.other risk faced in Australia are humen rights and business,terrorism threat, Bribery and correption,organised crime.