Final answer:
The option that is not an example of political risk is the decrease in consumers' income levels leading to decreased consumption, as it's not directly associated with government actions.
Step-by-step explanation:
The student question asks which of the following is not an example of political risk, which refers to the impact that government actions can have on a company's profits. Here are the available options, analyzed one by one:
- A government may impose taxes on a subsidiary - this is a direct action by a government that can affect a company's profitability, therefore it is a political risk.
- A government may impose barriers on a subsidiary - similar to taxes, trade barriers imposed by a government can affect a company's ability to operate and is consequently a political risk.
- Consumers may boycott the MNC - while this action relates to the public and can affect a company's performance, it is not directly associated with government actions and thus is not typically categorized as political risk.
- Consumers' income levels will decrease, thus decreasing consumption - this is a socioeconomic issue that could stem from a variety of factors, but is not directly a result of government action, so it is not considered a political risk.
Therefore, the answer to the student's question is that the decrease in consumers' income levels, resulting in decreased consumption, is not an example of political risk. It is not directly associated with government actions.