3) Political risk is classified into three distinct categories: company-specific risks, country-specific risks and global-specific risks. It is crucial for multinational enterprises (MNEs) to accurately identify, measure and manage these risks if they are to succeed. A. Business-specific risks are called micro-risks; These political risks impact the multinational enterprise at the project or company level. The main risk specific to a political enterprise is called governance risk and it arises from a conflict of objectives between a multinational enterprise and its host government. All multinational companies should have in-house political risk analysts who relate country-specific macroeconomic risk attributes to particular characteristics and vulnerabilities. Even with the best possible, country-specific risks are called macroeconomic risks; These political risks impact multinational companies at the project or company level, but originate at the national level. The two main types of risks in this category are transfer risk and cultural and institutional risks. Transfer risk mainly concerns the problem of blocked funds, but also sovereign credit risk on the periphery. While cultural and institutional risks arise from ownership structure, human resource standards, religious heritage, nepotism and corruption, intellectual property rights and protectionism. An example of country-specific risks was seen recently when Nepal was criticized for violating labor laws. Nike was largely affected by this and had to justify and prove that it complied with all labor laws. Consumers, particularly in North America, feared buying products made in a country with poor labor laws and considered boycotting Nike. In addition, the financing problem linked to country-specific risks concerns blocked funds. The financing problem associated with blocked funds is that "when a government is short of foreign exchange and cannot obtain additional funds by borrowing or attracting new foreign investment, it generally limits foreign exchange transfers out of that country." Management can consider escrow funds in its capital budgeting analysis. Temporarily blocking funds normally reduces the expected net present value and internal rate of return of a project. Global-specific risks are political risks that affect the multinational enterprise at the project or company level, but originate at the global level. Examples of this are terrorism, the alter-globalization movement, environmental concerns, poverty and cyberattacks. For example, the recent terrorist attacks in Brussels have disrupted the economic environment in Europe. The GBP/USD pair saw its biggest drop in a month amid the Brussels attacks and it could potentially fall further. This currency risk affects all businesses that deal with the GBP/USD currency pair. To manage specific risks on a global scale, a multinational company must adopt a crisis plan to protect its employees and assets and ensure the integrity of its supply chain. However, multinational corporations rely heavily on government to protect their citizens and businesses from specific threats on a global scale. In case of specific risks on a global scale, there are no problems of