In terms of foreign direct investment, what kind of risk is directly associated with a business's ability to survive in that country?a.)Political riskb.)National riskc.)Business riskd.)Government risk
Question
In terms of foreign direct investment, what kind of risk is directly associated with a business's ability to survive in that country?a.)Political riskb.)National riskc.)Business riskd.)Government risk
Solution
The kind of risk directly associated with a business's ability to survive in a foreign country in terms of foreign direct investment is a.) Political risk. This risk involves changes in the political environment or government policy that could negatively affect a company's ability to operate effectively and profitably. For instance, a change in government could lead to new laws being implemented that negatively impact the business. Other examples of political risks include civil unrest, changes in tax laws, and restrictions on the ability to repatriate profits.
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