Examples of control risk include
A)the unexpected imposition of capital controls,inbound or outbound,and withholding taxes on dividend and interest payments.
B)unexpected changes in environmental policies,sourcing/local content requirements,minimum wage law,and restriction on access to local credit facilities.
C)restrictions imposed on the maximum ownership share by foreigners,mandatory transfer of ownership to local firms over a certain period of time (fade-out requirements),and the nationalization of local operations of MNCs.
D)none of the options

Question

Quizplus · Accepted Answer

Control risk involves government actions that affect the ownership and control of foreign businesses, such as restrictions on foreign ownership and nationalization.

Examples of Control Risk Include