The Following Is Not an Example of Risk Factors for an MNC

question 13

Multiple Choice

The following is not an example of risk factors for an MNC:

• A)Freezing the movement of assets out of the host country
• B)Limits on the remittance of profits or capital
• C)Devaluing the currency
• D)Complying with contractual terms of agreements

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Definitions:

Agricultural Adjustment Act

New Deal legislation passed in 1933 that established the Agricultural Adjustment Administration (AAA) to improve agricultural prices by limiting market supplies; declared unconstitutional in United States v. Butler (1936).

Farm Prices

The monetary value assigned to agricultural products, which can fluctuate based on factors such as supply, demand, and market conditions.

Production Quotas

Predetermined targets for the amount of goods a factory or country must produce within a certain timeframe, often used in planned economies.