Question

Jeremy reminded the board members that it is important to understand the inflation rate of a country before entering into business. Jeremy is concerned with the ________ risks of doing business.

Answer 1

Economic risk

Step-by-step explanation:

Economic risk is defined as the probability that a business venture will fail in a foreign country as a result of a macroeconomic factor such as inflation, exchange rate, government regulation, and politics.

Inflation is the tendency of money losing its purchasing power.

In this scenario Jeremy is trying to understand the inflation rate of a country before entering into business.

He is weighing the risk of making loss as a result of inflation in the country