Which of the following is a major type of foreign investment risk that is insurable through government-backed programs?
A)lack of funds
B)risk of transaction loss
C)poor strategic tie-ups
D)risks of expropriation
E)losses due to natural calamities

Question

Quizplus · Accepted Answer

Risks of expropriation, where the foreign government might nationalize the assets or force the foreign investor to sell their interests, can be insurable through government-backed programs such as political risk insurance. The other options are not typically insurable risks. Lack of funds is a financing issue, risk of transaction loss can be mitigated through due diligence, poor strategic tie-ups are a business risk, and losses due to natural calamities can be insured through other types of insurance policies such as property or casualty insurance.

Which of the Following Is a Major Type of Foreign