The Potential Risk of a Host Government's Implementation of Specific

question 2

Multiple Choice

The potential risk of a host government's implementation of specific rules and regulations that can result in the discontinuity or seizure of the operations of a foreign company is called ________.

• A) exchange rate risk
• B) financial risk
• C) political risk
• D) business risk

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Definitions:

Import Quotas

Restrictions set by a country on the quantity of goods that can be imported within a certain time frame to protect domestic industries.

Domestic Employment

The total number of people employed within a country's borders, reflecting the health of the economy and labor market.

Services Abroad

The provision of services by a country or business to clients or customers located in other countries.

Goods Trade Surplus

An economic situation where a country exports more goods than it imports, leading to a positive trade balance.