The Most Important Variable in Determining a Country's Degree of Overall

question 7

Multiple Choice

The most important variable in determining a country's degree of overall country risk:​

• A) ​is political risk.
• B) ​is financial risk.
• C) ​is the probability of a host government takeover.
• D) ​may often vary with the country of concern.

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Definitions:

American Economy

The economic system of the United States, characterized by a mixed economy that supports free market activities.

Closed System

A physical or economic system that does not interact with or exchange matter with its surroundings.

Say's Law

An economic theory that suggests that supply creates its own demand, meaning that production inherently generates a demand for the goods produced.

Open Economy

An economy linked to the rest of the world through international trade.