A Political Risk That Might Affect All Foreign Firms in a Host

question 76

Multiple Choice

A political risk that might affect all foreign firms in a host country is termed a risk; a political risk that might affect only an individual firm or specific industry in a host country is termed a__________ risk.

• A) micro political; foreign exchange
• B) foreign exchange; micro political
• C) macro political; micro political
• D) micro political; macro political

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Definitions:

Wages and Salaries

Payments made to employees in exchange for their labor or services, categorized as either hourly (wages) or fixed annual amounts (salaries).

Cash and Cash Equivalents

Liquid assets that include currency, checks, and short-term investments that can be quickly converted to cash.

Net Income

Net income is the total profit remaining after all expenses, taxes, and costs have been subtracted from total revenues.

Equity

The value of an owner's interest in a property or business, calculated as the difference between the assets and liabilities.