________ Is the Risk That the Host Government Will Take

question 20

Multiple Choice

________ is the risk that the host government will take specific steps that prevent the foreign affiliate from exercising control over the firm's assets.

• A) Inconvertibility
• B) Expropriation
• C) Business income risk
• D) none of the above

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Definitions:

Competence

The ability to perform work tasks successfully.

Potential

The inherent ability or capacity of an individual, object, or concept to develop into something more substantial or perform at a higher level in the future.

Coercive Power

A form of power that is based on the ability to deliver punishments or impose penalties for noncompliance.

Social Intelligence

The ability to understand and manage interpersonal relationships effectively, including the capacity to navigate social environments and understand the dynamics at play.