The Most Appropriate Response to Political Risk Is to Avoid

question 35

True/False

The most appropriate response to political risk is to avoid entering a risky overseas market.

---

Definitions:

Top-Down Plan

An approach to business strategy and project planning where decisions are made at the highest level and communicated down the organizational hierarchy.

Scenario Analyses

The process of evaluating and analyzing possible future events by considering various alternative outcomes or scenarios.

Cash Flow

The total sum of money and money-like assets that move into and leave a company.

Average Collection Period

The approximate amount of time that it takes for a business to receive payments owed, in terms of receivables, from its customers and clients.