Operational Risk Refers to the Risk Which Arises from the Uncertainty

question 12

Multiple Choice

Operational risk refers to the risk which arises from the uncertainty about:

• A) the host's country's policies affecting the local operations of an MNC.
• B) the host's country's policy regarding ownership and control of local operations.
• C) cross-border flows of capital, payment, know-how, and the like.
• D) None of these.

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Definitions:

Income

Refers to the money an individual or business receives in exchange for providing a good or service or through investing capital.

Capital Intensive

Describes industries or businesses that require a large amount of capital investment in relation to their labor cost to produce goods and services.

Four Seasons Hotel

A luxury hotel chain known for its high-quality service and accommodations, catering to guests with upscale amenities.

Ford Manufacturing

The production processes and strategies used by the Ford Motor Company, known for innovations like the assembly line which revolutionized mass production.