Which one of the following statements concerning political risk is correct?
A) Political risk can be eliminated by operating only within Canada.
B) Reducing the parent company involvement in a foreign operation reduces political risk.
C) Borrowing funds from the government under which a foreign subsidiary operates reduces political risk.
D) Political risk is independent of the nature of the business.
E) The more stable a foreign country, the greater the political risk of operating a foreign subsidiary within that country.
Correct Answer:
Verified
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