Which of the Following Is an Effective Measure for Claimholders

question 50

Multiple Choice

Which of the following is an effective measure for claimholders if a foreign government prohibits repayment of debt obligations to an international lender?

• A)The claimholder can recover its outstanding debt through local courts.
• B)The claimholder can recover its outstanding debt through international courts
• C)The claimholder cannot do anything.
• D)The claimholder has limited recourse through normal legal channels but may exert leverage if it has control over future loans or supply of funds.

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Definitions:

Door-In-The-Face Effect

A compliance technique where a larger, unreasonable request is made first, followed by a smaller, more reasonable request that is the actual goal.

Conformity Hypothesis

A theory suggesting that individuals adjust their attitudes, beliefs, or behaviors to align with the norms of a group, often in response to real or imagined group pressure.

Coaction Effect

The phenomenon that individuals perform tasks better or work harder in the presence of others doing the same task.

Audience Effect

The impact that the presence of spectators has on an individual's performance, often resulting in enhancements or deteriorations.