Investing in Foreign Subsidiaries Can Be Less Risky When

question 14

Multiple Choice

Investing in foreign subsidiaries can be less risky when:

• A) laws to repatriate earnings are complex.
• B) the host country has higher tax rates.
• C) the host country is politically unstable.
• D) the exchange rates are volatile.
• E) there is international diversification.

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Definitions:

Loss

The state of being deprived of or of being without something that one has had or expected to have.

Risk of Loss

The legal responsibility for the damage, destruction, or loss of property, which can transfer from seller to buyer according to the terms of a contract.

Lease Term

The duration for which a lease agreement is effective.

Quiet Enjoyment

A tenant's right to occupy and use premises without interference from the landlord or others with superior title.