Final answer:
A foreign terrorist kidnapping your firm's marketing VP while abroad is an example of political risk, which refers to the potential complications businesses may face due to political changes.
Step-by-step explanation:
The incident described in the question where a foreign terrorist kidnaps your firm's marketing VP while the VP is in the host country is an example of political risk. Political risk refers to the complications businesses and governments may face as a result of what are commonly referred to as political decisions—or any political change that alters the expected outcome and value of a given economic action by changing the probability of achieving business objectives. Such risks can stem from a change in government, legislative bodies, other foreign policy makers, or military control. While cultural shock refers to the disorientation a person feels when experiencing an unfamiliar way of life in a new country, and market penetration refers to selling products or services within a particular market, and technological disruption occurs when a new technology causes a major shakeup in an industry, the act of kidnapping due to political motives fits squarely within the definition of political risk.