Which of the Following Situations Is an Example of Country

question 45

Multiple Choice

Which of the following situations is an example of country risk?

• A) Fiesta Corp. is an automobile manufacturer based in the U.S. The company's negotiation attempts with China to open a manufacturing factory in Beijing failed owing to cultural differences.
• B) Frostees Inc. is a food and beverages company based in the U.S. Its attempt to set up an outlet in Thailand failed primarily owing to a misinterpretation of the memorandum of understanding by a potential business partner in Thailand.
• C) Alpha Corp., a rice manufacturer based in Pakistan, suffered losses when the U.S. Department of Commerce decided to impose tariffs on the import of paddy rice to avoid competition for the domestic industry.
• D) Tamiaz LLC is a U.S.-based manufacturer of clothing with outlets in China, Vietnam, and India. The company incurred a loss due to delayed payments from India owing to fluctuations in the currency exchange rates.

---

Definitions:

Interpersonal Conflicts

Occurs when two or more individuals have differing views, interests, or goals, leading to disagreement or tension.

Brainstorming

A collaborative idea generation process where participants freely share thoughts and solutions to a problem without immediate criticism.

Organization Financially

Refers to the financial health, management, and stability of an organization, including aspects like budgeting, revenue generation, and financial planning.

Excessive Amounts

Quantities that surpass what is normal, necessary, or reasonable, often leading to negative consequences or inefficiency.