The Risk Associated with Unanticipated Actions by the Host Country

question 5

Multiple Choice

The risk associated with unanticipated actions by the host country government or its courts towards a multinational firm is called

• A)economic risk.
• B)transaction risk.
• C)political risk.
• D)translation risk.

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Definitions:

Verbal Offer

An offer made in spoken form rather than in writing, which may be binding depending on the context and jurisdiction.

Breach of Contract

Not adhering to any provision of a contract, both in written form or orally, without a legal rationale.

Invitation to Do Business

An offer or solicitation made by a business seeking to engage with potential clients or customers.

Final Offer

The last proposal or statement of conditions one party will accept during negotiations.