__________ includes any change to the "rules of the game" under which the foreign firm operates, especially when foreign firms are singled out.

Question

Quizplus · Accepted Answer

Operational risk includes any change to the rules of the game under which the foreign firm operates, such as changes in regulations or government policies, which can have a direct impact on the firm's operations. This type of risk is different from ownership risk, which refers to the risk that a foreign firm's assets may be expropriated, or transfer risk, which refers to the risk that capital and profits may be restricted. Bargaining risk, on the other hand, refers to the risk of negotiations with local partners, suppliers or other stakeholders.

__________ Includes Any Change to the "Rules of the Game