Examlex
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:
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