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International business is very exposed to political risk because large number of participants. Political risk is one of the hardest kind of measurable risk that are present in international business. The perception of risk is done through the identification of the spectrum of economic and other risks that are present in the life cycle of the company. Political risk is not easily measured because of the specific nature. In various economic – political system ruled by different rules, because the theory has developed several methods of measuring the political risk. The existence of political risk in a given market is the most common reason for withdrawal of large, multinational companies from investing in the same. The paper presented and analysed some of the basic types of political risks and their impact on the major players in the world market.


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