Multiple Choice
Some of the risks that a U.S. 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 the U.S., the Overseas Private Investment Corporation (OPIC) offers insurance against which of the above:
A) (i) , (ii) , (iii) , and (iv)
B) (v) , (vi) , (vii) , and (viii)
C) a and b
D) none of the above
Correct Answer:

Verified
Correct Answer:
Verified
Q80: The key factors that are important in
Q81: While there is no comprehensive theory of
Q81: Severe imperfections in the labor market arise
Q82: In evaluating political risk, experts focus their
Q83: In 1992, the Enron Development Corporation, a
Q84: In 1992, the Enron Development Corporation, a
Q87: In the 1960s, Coca-Cola, which had bottling
Q88: The Ford Motor Company recently acquired Mazda,
Q89: Also, MNCs often find it profitable to
Q90: Cross-border acquisition involves<br>A)building new production facilities in