A Country's Business Climate Is Not a Function of the Political

question 22

Multiple Choice

A country's business climate is not a function of the political and economic risk factors, such as:

• A) instability or weaknesses inherent with the national government.
• B) host-government hostility toward allowing foreign businesses market entry, often requiring local produced parts and components to be included in manufacturing, allowing for ease of funds transfers from the host country, and often requiring local ownership.
• C) Stability of country's monetary system.
• D) Lack of property rights protections and compliance with local environmental regulation.
• E) All of these.

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Definitions:

Timeframe

The period during which certain actions are supposed to occur or a particular event is planned to take place.

Present Value

The current worth of a future sum of money or stream of cash flows, given a specified rate of return. Present value accounts for the time value of money.

Interest Rate

The financial obligation a borrower incurs to a lender, calculated as a percentage of the principal, for the right to use certain assets.

Deposits Increase

A rise in the amount of money held in bank accounts, often indicative of an economy's health or individual savings growth.