Schlamp & Co

question 26

Multiple Choice

Schlamp & Co. is considering building a manufacturing facility in Country Z, which has changed it labor laws frequently and dramatically in the past decade. What kind of risk is created by these legislative actions?

• A) Physical risk
• B) Political risk
• C) Financial risk
• D) Economic risk

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Definitions:

Opportunity Cost

The cost of forgoing the next best alternative when making a decision or choosing an action.

Tons of Rice

A unit of measure indicating the quantity of rice, often used in trading and economic analysis related to agricultural commodities.

T-shirts

T-shirts are a staple clothing item made from fabric, characterized by their T-shaped body and sleeves, commonly worn by people of all ages and genders.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision or choosing to allocate resources in one way rather than another.