Examples of Control Risk Include

question 96

Multiple Choice

Examples of control risk include

• A)the unexpected imposition of capital controls,inbound or outbound,and withholding taxes on dividend and interest payments.
• B)unexpected changes in environmental policies,sourcing/local content requirements,minimum wage law,and restriction on access to local credit facilities.
• C)restrictions imposed on the maximum ownership share by foreigners,mandatory transfer of ownership to local firms over a certain period of time (fade-out requirements),and the nationalization of local operations of MNCs.
• D)none of the options

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Definitions:

Government Spending

Expenditures made by the government sector including spending on goods and services, public projects, and social programs.

Taxes

Mandatory financial charges or levies imposed by a government on individuals, corporations, and other entities to fund public expenditures.

Inflationary

Pertaining to inflation, describing a situation or trend where prices for goods and services rise over time, diminishing purchasing power.

Government Expenditures

The total amount of money spent by the government in a given period, including spending on goods and services, transfer payments, and interest on debt.