Which of the Following Is NOT an Example of Political

question 21

Multiple Choice

Which of the following is NOT an example of political risk?

• A) Expropriation of cash flows by a foreign government.
• B) The U.S. government restricts trade with a foreign country where your firm has investments.
• C) The foreign government nationalizes all foreign-owned assets.
• D) All of the above are examples of political risk.

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Definitions:

Reference groups

Groups that individuals compare themselves to for the purpose of evaluating their behaviors, attitudes, and values.

Primary groups

Small social groups characterized by close, personal, and enduring relationships, such as family or close friends.

Long-term

Pertaining to a prolonged period of time, often extending beyond what is usual or expected.

Intimate relationships

Deeply personal connections between individuals characterized by emotional attachment, love, trust, and ongoing personal interaction.