The Ways That a Foreign Government Can Adversely Affect the Risk

question 55

Multiple Choice

The ways that a foreign government can adversely affect the risk of a foreign project include all EXCEPT:

• A) Change tax laws in a way that adversely impacts the company.
• B) Impose laws related to labour, wages, and prices that are more restrictive than those applicable for domestic companies.
• C) Remove tariffs and quotas on any imports.
• D) Disallow any remittance of funds from the subsidiary to the parent company for either a limited period of time or the duration of the project.

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Definitions:

Operational Plans

Detailed plans developed to implement strategic initiatives at a tactical level, focusing on short-term actions and resources.

Strategic Plans

Detailed, carefully crafted outlines of how an organization intends to achieve its long-term goals and objectives.

Single-use Plans

Plans devised for a specific situation or project and intended to be used only once, not applicable to recurring situations.

Procedures

Systematic instructions or steps designed to perform a specific task or process effectively and efficiently.