Some of the Risks That a U

question 38

Multiple Choice

Some of the risks that a U.S.-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.

• A)(i),(ii),(iii),and (iv)
• B)(v),(vi),(vii),and (viii)
• C)(i),(ii),(iii),(iv),(v),(vi),(vii),and (viii)
• D)none of the options

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