The government of Diamza recently passed a law making it mandatory for any foreign company that wants to do business in its country to only use raw materials made in Diamza and only hire citizens. This is a type of _____ faced by companies that want to conduct business in Diamza.

Question

Quizplus · Accepted Answer

The situation described in the question is an example of policy uncertainty, which refers to uncertainty caused by changes in government policies or regulations. The new law from the government of Diamza has created uncertainty for foreign companies as they have to change their operations to comply with the new policy.

The Government of Diamza Recently Passed a Law Making It