Question 1
Which of the following is NOT a possible political risk when practicing business internationally?
◦ Loss of using own specialized labor
◦ Fewer opportunities for growth
◦ Limited ability to convert currency
◦ Additional taxes
Question 2
XY Corp has a plant in a small country with a friendly, though unstable government. A new government takes over before XY Corp is able to move any assets out of the country. The new government chooses to not recognize XY's ownership and takes control of the company's assets. This is an example of
◦ arbitrage.
◦ exchange rate risk.
◦ nationalization.
◦ hostile takeover.