Some of the Risks That a Canadian Based MNC Can

question 20

Multiple Choice

Some of the risks that a Canadian based MNC can encounter in its foreign investments are: (i) - an increase in the cost of borrowing due to a rise in interest rates.
(ii) - increase in inflation rates.
(iii) - dumping.
(iv) - unfair competition by local companies.
(v) - inconvertibility of foreign currencies.
(vi) - expropriation.
(vii) - destruction of properties due to war,revolution,and other violent political events in foreign countries.
(viii) - loss of business income due to political violence.
In Canada,the Export Development Canada (EDC) offers insurance against which of the above:

• A) (i), (ii), (iii), and (iv)
• B) (v), (vi), (vii), and (viii)
• C) (iv), (v), (vi), and (vii)
• D) None of these.

---

Definitions:

Violin

A stringed musical instrument that is played with a bow, known for its high pitch and prominence in classical and folk music.

Cello

A string musical instrument with four strings, played with a bow, and known for its deep, rich tones.

Bales of Hay

Compact bundles of hay, typically bound with twine or wire, and used primarily for feeding livestock.

Horse Stable Inc.

A hypothetical or specific company involved in maintaining buildings or establishments for the care, feeding, and training of horses.