Which of the following characterizes country risk?
A) The political and legal systems of adjacent nations greatly impact the country risk of nations that host foreign firms.
B) Country risk will change only after the creation of laws and regulations that affect foreign firms.
C) A nation's country risk level remains fairly constant until the election and installation of a new political leader.
D) Country risk is always present, but its intensity fluctuates over time and from country to country.
Correct Answer:
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