One Particular Type of Political Risk That MNCs and Investors

question 70

Multiple Choice

One particular type of political risk that MNCs and investors may face is corruption associated with the abuse of public office for private benefits.

• A)Investors may often encounter demands for bribes from politicians and government officials for contracts and smooth bureaucratic processes.
• B)If companies refuse to make grease payments, they may lose business opportunities or face difficult bureaucratic red tape.
• C)They may risk violating laws or being embarrassed when the payments are discovered and reported in the media.
• D)All of the above

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