Which of the Following Is Not an Example of Political

question 32

Multiple Choice

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

• A) The Japanese government requires an MNC's subsidiary to install exercise rooms for its employees.
• B) The Swiss government requires an MNC's subsidiary to install filters in its manufacturing plants to reduce pollution.
• C) Country X, considered for expansion, frequently goes to war with its neighbors.
• D) Country Y's government has recently taken over the subsidiary of one of your competitors, another U.S.-based MNC.
• E) All of the above are examples of political risk.

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Definitions:

Price Rises

A general increase in the cost of goods and services in an economy, often indicating inflationary pressures.

Ration

The controlled distribution of scarce resources, goods, or services, often during shortages or in wartime.

Surplus

The situation in which the quantity supplied of a product exceeds the quantity demanded at a given price.

Excess Demand

A situation where the quantity demanded of a product exceeds the quantity supplied at a given price, often leading to price increases.