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Which of the following factors in a country is most

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112.Which of the following factors in a country is most likely to cause a political risk for aninternational business?A. The presence of more than one ethnicnationalityB. Infrequent changes in government andgovernment policyC. Low inflationrateD. Low level of governmentdebtE. High livingstandards
113.Lamboria Republic is facing a high rate of inflation, and the government debt in thecountry is also high. As a result, the country's business environment is beginning todeteriorate, and the profits of the business enterprises are hurt. According to thisinformation, Lamboria Republic is facing a(n) _____ risk.
114.Which of the following statements is most likely to be true about the risks of doingbusiness in a country?
115.The government of Ugania had been extending huge amounts of loans to thebusiness enterprises in the country. However, the borrowers failed to generate theprofits necessary to repay their debts. As a result, national banks in Ugania had a lotof nonperforming assets on their books, and the Uganian currency was devalued. Inthis context, the business enterprises in Ugania are most likely to face a(n) _____ risk.
116.A(n) _____ risk can be defined as the likelihood that a trading partner willopportunistically break a contract or expropriate property rights.A. politicalB. legalC. economicD. sociologicalE. cultural

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Term
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Tags
Capitalism, Communism, Economic system, Planned economy

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