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Political Risk Is Associated with Political Changes That May Negatively

Question 35

Multiple Choice

Political risk is associated with political changes that may negatively impact domestic and foreign firms. Which statement about political risk is correct?


A) Political risk only exists in communist countries.
B) Firms operating in democracies never confront political risk.
C) Firms operating in democracies are subject to political risk.
D) Political risk is a myth.

Correct Answer:

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