The ways that a foreign government can affect the risk of a foreign project include:

Question

Quizplus · Accepted Answer

All of the above choices can affect the risk of a foreign project. A change in tax laws can increase the cost of doing business and impact the profitability of the project. More restrictive laws related to labour, wages, and prices can increase costs and affect the ability to compete in the local market. Disallowing remittance of funds can impact the ability to access necessary capital and can limit the ability to make additional investments in the project. Therefore, all of these factors should be considered when assessing the risk of a foreign project.

The Ways That a Foreign Government Can Affect the Risk