Pinkmake Inc. is expanding its global operations into Jartainia in spite of the frequent changes in its government due to the assassination attempts on its prominent leaders. As Pinkmake Inc. expands into Jartainia, it must deal with _____

Political uncertainty is the tendency for a change in the executive power either legally or illegally, constitutionally or unconstitutionally. This affects business operations in different ways. It reduces businesses and economic activities. Also, for new businesses starting up in a politically unstable country, it follows the uncertainty of things like changes in policies, tax rate, operations permit and so on. So pinkmake expanding into Jartiania must deal with the issues of political Uncertainty.

adioabiola adioabiola · Answer 2 · 2020-03-19T03:30:02+01:00

Answer:

Pinkmake inc. must deal with political uncertainty as it expands into Jartainia

Explanation:

Political uncertainty can be defined as an economic risk taken by a business which is caused by uncertainty in polical decision of a country in the future. The uncertainty could lead to delay in different making in a business organzation. It is a form of political instability that affects business owners.

Political uncertainty can also be called "regime uncertainty".

Political uncertainty may be in form of change in government regulation on monetary and fiscal policy, the change in tax rate. It could also arise as a result of election outcomes which will change leadership of a country.

It is very important for business firms and entrepreneurs to put into consideration political uncertainties when deciding to start, expand, or contract their businesses.