Which One of These Is Probably the Best Means of Reducing

question 27

Multiple Choice

Which one of these is probably the best means of reducing or offsetting political risk?

• A) Refusing any foreign government assistance in building the infrastructure required for your foreign operations
• B) Borrowing money in the country in which you have foreign operations to fund those activities
• C) Manufacturing a complete product in a foreign country using only resources from that country
• D) Paying for all foreign operations with cash originating in the home country

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Definitions:

Budgets

Financial plans that outline expected income and expenditure over a specific time period, used by individuals, businesses, and governments to guide economic decision-making.

Qualitative Forecasting

The method of forecasting outcomes based on non-numerical information such as expert opinion, rather than quantitative data.

Expert Opinions

Judgments or advice given by individuals with extensive knowledge or expertise in a particular area.

Procedures

Established sequences of actions or steps designed to achieve specific tasks or processes within an organization.