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Some of the Risks That a U

Question 85

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

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