Which of the following is an extreme form of risk associated with investing in a foreign country?
A)Credit risk
B)Labor unrest
C)Expropriation
D)Immigration rules

Question

Quizplus · Accepted Answer

Expropriation is an extreme form of risk associated with investing in a foreign country. It involves the government of the foreign country taking over the assets of the foreign investor without adequate compensation. This can happen due to political instability, changes in government policies or regulation, or simply because the government decides that the foreign investor's assets are needed for national interests. Credit risk, labor unrest, and immigration rules are all risks associated with foreign investment, but they are not as extreme as expropriation.

Which of the Following Is an Extreme Form of Risk