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.

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Definitions:

Hypodermis

The innermost layer of the skin, composed primarily of fat and connective tissues, providing insulation and cushioning for the body.

Reticular Region

The deeper layer of the dermis in the skin, composed of dense irregular connective tissue featuring collagen and elastin fibers.

Papillary Region

The uppermost layer of the dermis, featuring finger-like projections called papillae that increase surface area for nutrient exchange and grip.

Arrector Pili

Small muscles attached to hair follicles in mammals, contraction of which causes the hair to stand on end.