Taxes must be classified as a(n) ________ risk when used as a means of controlling foreign investments.
A) political
B) social
C) ignorable
D) environmental
E) harmless

Question

Quizplus · Accepted Answer

Taxes are considered a political risk because they are imposed by governments and can significantly affect the profitability and feasibility of foreign investments. Changes in tax policy can directly impact the operating costs and net income of businesses operating in a foreign country.

Taxes Must Be Classified as A(n) ________ Risk When Used