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:

Cooling-Off Period

A legally mandated time frame allowing parties to back out of financial agreements without penalty.

Truth-In-Lending Act

A U.S. federal law designed to protect consumers in their dealings with lenders and creditors, ensuring clear disclosure of loan terms and costs.

Cease-And-Desist Order

An administrative or judicial order prohibiting a person or business firm from conducting activities that an agency or court has deemed illegal.

Federal Trade Commission

An independent agency of the United States government, established to prevent unfair business practices and promote consumer protection.