The Ways That a Foreign Government Can Affect the Risk

question 47

Multiple Choice

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

• A) Change tax laws in a way that adversely impacts the firm.
• B) Impose laws related to labor, wages, and prices that are more restrictive than those applicable for domestic firms.
• C) Disallow any remittance of funds from the subsidiary to the parent firm for either a limited period of time or the duration of the project.
• D) All of the above.

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Definitions:

Strictness Error

A bias in performance appraisal characterized by consistently rating employees more harshly than their performance deserves.

Performance Feedback

The process in which employees receive information and evaluation about their work performance from supervisors, peers, or self-assessment.

Problem-Solving Approach

A problem-solving approach involves a step-by-step process of defining the problem, generating alternative solutions, evaluating and selecting the best solution, and implementing it to address the issue or situation faced.