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 above

Question

Quizplus · Accepted Answer

Transfer risk refers to the risk associated with cross-border flows of capital, payment, know-how, and the like. This includes risks related to currency exchange rates, government regulations, and trade policies. Choices A and B relate more to political risk, while choice D is not a valid option as transfer risk does exist in international business.

Transfer Risk Refers to the Risk Which Arises from the Uncertainty