An Increase in Political Risk Can Be Managed by

question 20

Multiple Choice

An increase in political risk can be managed by

• A)adjusting a foreign investment project's NPV by either reducing its expected cash flows, or by increasing the cost of capital.
• B)forming joint venture with a local company.
• C)purchase insurance against the hazard of political risk.
• D)all of the above

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Definitions:

Intragroup Conflict

Disagreements or disputes that occur within a group, team, or organization, which can arise from differences in opinions, goals, or working styles among its members.

Groupthink

A phenomenon in which the desire for harmony or conformity in a group results in an irrational or dysfunctional decision-making outcome.

Group Loyalty

A sense of commitment and solidarity among members of a group towards their group and its goals.

Dysfunctional Behavior

Actions that are counterproductive to an individual’s own goals or well-being, often causing negative effects on others around them.