Which of the following represent common political and economic risks in entering an emerging market?
A) Excessive local government regulation
B) Confiscatory tax rates
C) Lack of enforcement of contracts
D) Fluctuating exchange rates
E) All of the above `

Question

Quizplus · Accepted Answer

All of the options listed are common political and economic risks faced by companies entering emerging markets. Excessive local government regulation can make it difficult for companies to operate effectively, while confiscatory tax rates can eat into profits. Lack of enforcement of contracts can make it difficult to ensure that deals are honored, which can lead to financial losses. Fluctuating exchange rates can create uncertainty and increase the risk of financial losses.

Which of the Following Represent Common Political and Economic Risks