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Some of the Risks That a Canadian Based MNC Can

Question 20

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.

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