Assuming that you own an international business established in Mexico:
a. Review the political risk factors, and identify those that could possibly affect your business. Explain how your cash flows could be affected?
b. Explain why any threats of terrorism due to friction between two countries could possibly your business, even if the terrorism has no effect on the relations between the U.S. and Mexico.
c. Assume there is an upcoming election in Mexico that may result in a complete change in government. Explain why such an election can have significant effects on your cash flows.