Transfer risk refers to the risk which arises from the uncertainty about
A)the host's country's policies affecting the local operations of an MNC.
B)the host's country's policy regarding ownership and control of local operations.
C)cross-border flows of capital,payment,know-how,and the like.
D)none of the options

Question

Quizplus · Accepted Answer

Transfer risk refers to the risk that arises due to uncertainty about cross-border flows of capital, payment, know-how, and other such factors. It pertains to the risk of losing funds or other assets while transferring them from one country to another. Thus, option C is the correct answer. Option A refers to political risk, while option B refers to ownership risk. Option D is incorrect as the answer is given in the other options.

Transfer Risk Refers to the Risk Which Arises from the Uncertainty