The Risk of the Effects of a Financial Crisis in One

question 21

Multiple Choice

The risk of the effects of a financial crisis in one region or country spreading to another is called

• A)contagion risk.
• B)global financial risk.
• C)country risk.
• D)currency risk.

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Definitions:

Industry Entry

The process of a new competitor or company beginning operations in a specific market or industry.

MR

Marginal Revenue, the additional income that is gained from selling one more unit of a product or service.

Profit-Maximizing

A strategy or approach aimed at achieving the highest possible profit from business operations.

Positive Profits

A financial gain that occurs when the revenues generated from business activities exceed the costs and expenses involved in operating the business.