Final answer:
The statement is false; the correct term for an event that affects all foreign firms in a region is a macro-political risk event, not a micro-political risk. Option b
Step-by-step explanation:
The statement in question is false. An event affecting all foreign firms operating in a country or region is known as a macro-political risk event, not a micro-political risk event.
Macro-political risks involve policies or events that can affect all foreign firms in a region, such as changes in tax laws, revolution, war, or widespread nationalization. On the other hand, micro-political risks are company-specific events, such as the passage of a law that affects only one industry or company.
For example, if a country decides to increase tariffs on all imported goods, this represents a macro-political risk because it impacts all foreign firms exporting to that country.
The forces of globalization and new communications and information technology have indeed changed the landscape of international trade, exposing firms to greater competition but also to new risks. Policies aimed at protecting domestic interests can have both positive and negative effects on the global economy and the operations of multinational firms. option b