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Author Question: XY Corp has a plant in a small country with a friendly, though unstable government. A new government ... (Read 51 times)

Alygatorr01285

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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.


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Marked as best answer by Alygatorr01285 on Apr 25, 2021

briseldagonzales

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Alygatorr01285

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Reply 2 on: Apr 25, 2021
Great answer, keep it coming :)


triiciiaa

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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