Multiple Choice
Which of the following is an example of a transfer risk:
A) Risk of involuntary transfer of the firm's ownership from foreign shareholders to the government of the host country through expropriation.
B) A possibility that the host country government will impose the restriction on the percentage of the foreign ownership in which case new equity must be issued and the current foreign shareholders will effectively lose control over the firm although they will be compensated for their shares of control over the firm.
C) Risk that the firm's shares will not be allowed to be listed on the host country stock exchange, which reduces the ability to freely transfer the ownership.
D) Restriction on the cross-border flow of capital.
Correct Answer:

Verified
Correct Answer:
Verified
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