Multiple Choice
Some of the risks that a Canadian based MNC can encounter in its foreign investments are: (i) - an increase in the cost of borrowing due to a rise in interest rates.
(ii) - increase in inflation rates.
(iii) - dumping.
(iv) - unfair competition by local companies.
(v) - inconvertibility of foreign currencies.
(vi) - expropriation.
(vii) - destruction of properties due to war,revolution,and other violent political events in foreign countries.
(viii) - loss of business income due to political violence.
In Canada,the Export Development Canada (EDC) offers insurance against which of the above:
A) (i) , (ii) , (iii) , and (iv)
B) (v) , (vi) , (vii) , and (viii)
C) (iv) , (v) , (vi) , and (vii)
D) None of these.
Correct Answer:

Verified
Correct Answer:
Verified
Q15: Cross-border acquisition involves:<br>A) building new production facilities
Q16: An increase in political risk can be
Q17: Synergistic gains refer to:<br>A) gains from hedging.<br>B)
Q18: How can firms establish a wholly owned
Q19: The key factors that are important in
Q21: Country risk refers to:<br>A) transfer risk.<br>B) control
Q22: Political risk can be evaluated by studying:<br>A)
Q23: Explain the role of market imperfections in
Q24: Which of the following statements is true
Q25: Political risk is classified into:<br>A) macro- and