Some of the risks that a Canadian based MNC can encounter in its foreign investments are:
(i) - an increase in the cost of borrowing due to a rise in interest rates
(ii) - increase in inflation rates
(iii) - dumping
(iv) - unfair competition by local companies
(v) - inconvertibility of foreign currencies
(vi) - expropriation
(vii) - destruction of properties due to war,revolution,and other violent political events in foreign countries
(viii) - loss of business income due to political violence
In Canada,the Export Development Canada (EDC) offers insurance against which of the above:
A) (i) , (ii) , (iii) , and (iv)
B) (v) , (vi) , (vii) , and (viii)
C) a and b
D) none of these
Correct Answer:
Verified
Q1: Operational risk refers to the risk which
Q2: Control risk refers to the risk which
Q3: Transfer risk refers to the risk which
Q6: Which of the following statements is true
Q7: Political risk is classified into:
A)Macro- and micro
Q8: Cross-border acquisition involves:
A)building new production facilities in
Q9: Synergistic gains refer to:
A)gains from hedging
B)gains obtained
Q10: What percentage of FDI originates in developed
Q11: Foreign direct investment is undertaken via
A)Buying bonds
Q75: Political risk refers to
A)the potential losses to
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