The difference between political risks and economic risks is that
A. political risks stem from hostility to foreign currencies, while economic risks stem from the instability of the monetary system.
B. political risks stem from stability in foreign business, while economic risks stem from an excess of property right protections.
C. political risks stem from the stability of a country's monetary system, while economic risks stem from instability in national business.
D. political risks stem from instability or weakness in national governments, while economic risks stem from the stability of a country's monetary system, and its economic and regulatory policies.
E. political risks stem from exchange rate fluctuations, while economic risks stem from hostility to foreign business.
Answer: D
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