Question

Political unrest in countries often creates a hostile environment for foreign businesses and can act as a barrier to international trade.

a. True
b. False

Answer 1

True. When there is unrest, it makes for an uncertain business climate. Businesses are averse to uncertainty and would not want to invest in nations which are experiencing infighting or other sorts of upheaval. Stability is the key for businesses and organizations to find good trading partners and investments.