Important types of risk in an international capital budgeting context include all of the following EXCEPT

Question

Quizplus · Accepted Answer

Exchange rate risk and political risk are commonly recognized risks in international capital budgeting. Appropriation risk, on the other hand, is not as commonly identified as a separate type of risk. This risk refers to the possibility that a foreign government may seize or nationalize a company's assets without providing compensation. While appropriation risk can be significant in some countries, it is not typically considered one of the major types of risk in international capital budgeting.

Important Types of Risk in an International Capital Budgeting Context