Some of the risks that a U.S.-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.
A) (i) ,(ii) ,(iii) ,and (iv)
B) (v) ,(vi) ,(vii) ,and (viii)
C) (i) ,(ii) ,(iii) ,(iv) ,(v) ,(vi) ,(vii) ,and (viii)
D) none of the options
Correct Answer:
Verified
Q78: Imperfections in the market for intangible assets
Q79: As a mode of FDI entry,cross-border M&A
Q80: Cross-border acquisition involves
A)building new production facilities in
Q81: In evaluating political risk,experts focus their attention
Q82: In 1992,the Enron Development Corporation,a subsidiary of
Q84: Country risk refers to
A)political risk.
B)credit risk,and other
Q85: Country risk
A)is a broader measure of risk
Q86: In 1992,the Enron Development Corporation,a subsidiary of
Q87: Countries may welcome greenfield investments,
A)as they are
Q88: Examples of transfer risk include
A)the unexpected imposition
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