The Risk That a Foreign Country Where an MNC Does

question 11

Multiple Choice

The risk that a foreign country where an MNC does business might take action that would adversely affect the MNC is called:

• A)political risk.
• B)nationalization.
• C)privatization.
• D)economic risk.

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Definitions:

Real GDP

The measure of a country's economic output adjusted for price changes, such as inflation or deflation, to reflect the true value of goods and services produced.

Investment

The action or process of allocating resources, usually money, with the expectation of generating an income or profit.

Real GDP

The measure of the value of economic output adjusted for price changes (inflation or deflation), reflecting the real quantity of goods and services produced.

Recession

A notable decrease in economic performance affecting the entire economy, persisting for an extended period beyond several months, is usually observed in metrics such as real GDP, real income, employment, industrial production, and wholesale-retail sales.