The government of Bicana recently passed a law requiring every foreign country operating in Bicana to pay 50% of its earnings in taxes. As a result, many foreign companies are planning to shut down their ventures in the country. This is a type of _____ faced by companies that want to conduct business in Bicana.

Question

Quizplus · Accepted Answer

The scenario describes a situation where the government changed its policy by passing a law that requires foreign companies to pay 50% of their earnings in taxes. This policy uncertainty creates uncertainty for companies about the future regulations and how this policy change will impact their business operations in the country. The companies faced with this type of uncertainty may choose to shut down their ventures as a result.

The Government of Bicana Recently Passed a Law Requiring Every