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
In the U.S., the Overseas Private Investment Corporation (OPIC) 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 the above

Question

Quizplus · Accepted Answer

OPIC offers political risk insurance which covers risks such as inconvertibility of foreign currencies, expropriation, destruction of properties due to war or political violence, and loss of business income due to political violence. It does not offer insurance for risks such as increase in the cost of borrowing, inflation, dumping, or unfair competition by local companies.

Some of the Risks That a U