Political risk insurance and local debt financing are both forms of ________.

Question

Quizplus · Accepted Answer

Political risk insurance and local debt financing are both forms of hedging as they help to mitigate the risk associated with doing business in a foreign country. Political risk insurance protects against losses due to political instability, whereas local debt financing allows companies to access funding in local currency, reducing exposure to currency fluctuations.

Political Risk Insurance and Local Debt Financing Are Both Forms