Macro Political Risk and Micro Political Risk in International Business

question 26

Multiple Choice

Macro political risk and micro political risk in international business refer to the risk

• A) of nationalization of the oil industry and the risk of a political revolution, respectively.
• B) that will affect an individual firm or specific industry and the risk that will affect all foreign firms, respectively.
• C) of sudden taxes on exporting the manufactured goods of a particular industry and the risk of the devaluation of the host country's currency, respectively.
• D) that will affect all foreign firms and the risk that will affect an individual firm or specific industry, respectively.

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Definitions:

Expectations

Beliefs or anticipations about the future, often based on experience, knowledge, or perceived trends.

Illicit Drug

A substance whose production, sale, or use is prohibited by law, often associated with addiction and illegal trade.

Endorphins

Natural chemicals in the body that fight pain and promote feelings of pleasure and well-being.

Marijuana

A psychoactive drug from the Cannabis plant used primarily for medical or recreational purposes.