A U.S.firm is deciding on whether or not to build a production facility in Uruguay.All else equal, if Uruguay has a relatively high inflation rate, it therefore has relatively high
A) economic risk.
B) political risk.
C) investment risk.
D) financial risk.

Question

Quizplus · Accepted Answer

High inflation rates can create economic instability, leading to uncertainties in the local market, including increased prices for materials and labor. This uncertainty represents economic risk for the U.S firm considering investment in Uruguay.

A USfirm Is Deciding on Whether or Not to Build a a Production