Renault paid 1 billion usd to acquire a 25 percent ownership stake in the russian automaker avtovaz in 2008. just one year later, russian prime minister vladimir putin threatened to dilute the renault ownership stake unless it contributed more money to prop up avtovaz, which was then experiencing a significant slide in sales. this is an example of risk. currency economic political management

In any sort of investment there are multiple sources of risk. The most evident ones are economic risks. If the general economic situation is not accurately estimated, the investment is prone to falling through. For example there could be an unfavorable recession in the following months etc. Currency risks are tied to the fiscal policy of the state that uses the currency. Management risks are risks that are related to pressures when changes in management occur (CEO change etc.). In this case, the risk is not related to any of those concepts; rather we have an intervention that is political in nature in the economics of a big business. Those risks are called political risks and they can occur quite frequently, especially since the global market has torn down hindrances and trade barriers. Thus, many companies are on foreign soil (or have shares there) and local political pressure might affect them.

Ithink it should be increased.

The answer would be