Knowee
Questions
Features
Study Tools

Imposition of new taxes, exchange transfer restrictions, nationalization or other laws may risk the prospects of repayment and recovery.a.Political riskb.Business riskc.Legal riskd.Operator risk

Question

Imposition of new taxes, exchange transfer restrictions, nationalization or other laws may risk the prospects of repayment and recovery.a.Political riskb.Business riskc.Legal riskd.Operator risk

🧐 Not the exact question you are looking for?Go ask a question

Solution

The risk described in the question is a Political risk. This is because it involves changes in laws, taxes, and other governmental policies that can affect the prospects of repayment and recovery. These changes are often unpredictable and can occur in any country, making it a risk that businesses must consider when operating in foreign markets.

Similar Questions

The risk that an investor will be forced to place earnings from a loan or security into a lower yielding investment is known as A.foreign exchange risk.B.credit risk.C.reinvestment risk.D.liquidity risk.E.off-balance-sheet risk.

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

The likelihood that a nation will take control of a publicly traded company is referred to as the:a.market dangerb.cultural hazardc.exchange rate riskd.political risk

The following are examples of political risk actions local-content laws and exchange controls. import and labour restrictions price and tax controls all of the above

In a situation a company is not able to pay its interest and other financial obligations. The company is facing _____________.Business riskFinancial riskLong-term riskMarket risk

1/2

Upgrade your grade with Knowee

Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.