Which of the Following Is NOT an Example of a Form

question 1

Multiple Choice

Which of the following is NOT an example of a form of political risk that might be avoided or reduced by foreign exchange risk management?

• A) expropriation of assets
• B) destruction of raw materials through natural disaster
• C) war
• D) unfavorable legal changes

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Definitions:

Due Diligence

The thorough investigation or exercise of care that a reasonable business or person is normally expected to take before entering into an agreement or contract with another party.

Reasonable Steps

Reasonable steps are measured and practical actions taken to achieve a particular goal or to comply with legal and regulatory standards.

Event

An organized occurrence, gathering, or activity designed for a specific purpose or objective.

Organizational Level

Organizational level refers to a specific layer within the hierarchy of an organization, each with its own responsibilities and functions.