________ Is the Ability to Exercise Effective Control Over a Foreign

question 4

Multiple Choice

________ is the ability to exercise effective control over a foreign subsidiary within a country's legal and political environment.

• A) Political risk
• B) Portfolio risk
• C) Interest rate risk
• D) Governance risk

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Definitions:

Lessee

A person or entity who holds the lease of a property; a tenant.

Merchant

A person or company involved in the trade of goods, services, or commodities for profit.

Sale

The passing of title from a seller to a buyer for a price.

Implied Warranty of Fitness

An assurance, typically not expressly stated, that a product will be suitable for its intended purpose.