Which of the following is an example of a transfer risk:
A) Risk of involuntary transfer of the firm's ownership from foreign shareholders to the government of the host country through expropriation.
B) A possibility that the host country government will impose the restriction on the percentage of the foreign ownership in which case new equity must be issued and the current foreign shareholders will effectively lose control over the firm although they will be compensated for their shares of control over the firm.
C) Risk that the firm's shares will not be allowed to be listed on the host country stock exchange, which reduces the ability to freely transfer the ownership.
D) Restriction on the cross-border flow of capital.
Correct Answer:
Verified
Q1: Foreign direct investment is undertaken via:
A) buying
Q2: Control risk refers to the risk which
Q4: Political risk can be evaluated by studying:
A)
Q5: Some of the risks that a Canadian
Q6: The following are barriers to trade except:
A)
Q7: Which of the following statements is true
Q8: An increase in political risk can be
Q9: Operational risk refers to the risk which
Q10: Synergistic gains refer to:
A) gains from hedging.
B)
Q11: Which of the following is not an
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents