Consider the Differences Between International Risk Management and Domestic Risk

question 8

Multiple Choice

Consider the differences between international risk management and domestic risk management.Which one of the following would be the least important concern in the international risk management function?

• A)the physical perils causing the losses
• B)the problem of foreign currency value fluctuations
• C)political risks, meaning the unexpected intervention by foreign governments
• D)the foreign risk financing and insurance arrangements

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Definitions:

Electron Wave

A quantum mechanical description of electrons as wave-like particles, significant in explaining the behavior of electrons in atoms and molecules.

π Bonds

Covalent chemical bonds resulting from the sidewise overlap of two atomic p orbitals, characterized by electron density above and below the axis of the bonded atoms.

π Bonds

Pi bonds occur when two lobes of an orbital on one atom overlap two lobes of an orbital on another atom and electron density is concentrated above and below the plane of the nuclei.

Molecular Orbital

A region of space in a molecule where an electron is likely to be found, formed by the overlap of atomic orbitals from bonded atoms.