Karcher Enterprises, an MNE, is considering building a new factory overseas but has not determined the best location. Which of the following potential locations would require Karcher Enterprises to make the largest risk adjustment?

Question

Quizplus · Accepted Answer

Syria would require the largest risk adjustment due to its political instability, ongoing conflict, and economic sanctions. These factors significantly increase the risk of investing in the country compared to India, Japan, and Mexico, which are more stable and have more predictable investment environments.

Karcher Enterprises, an MNE, Is Considering Building a New Factory