menu-iconExamlexExamLexServices

Discover

Ask a Question
  1. All Topics
  2. Topic
    Business
  3. Study Set
    International Financial Management Study Set 5
  4. Exam
    Exam 16: Foreign Direct Investment and Cross-Border Acquisitions
  5. Question
    An Increase in Political Risk Can Be Managed by
Solved

An Increase in Political Risk Can Be Managed by

Question 45

Question 45

Multiple Choice

An increase in political risk can be managed by


A) adjusting a foreign investment project's NPV by either reducing its expected cash flows,or by increasing the cost of capital.
B) forming joint venture with a local company.
C) purchasing insurance against the hazard of political risk.
D) all of the options

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q40: OPIC is the<br>A)Overseas Pirate Investment Corporation.<br>B)Overseas Private

Q41: Imperfections in the market for intangible assets

Q42: The Ford Motor Company recently acquired Mazda,a

Q43: FDI vertical integration is backward<br>A)when FDI involves

Q44: Coca-Cola has invested in bottling plants all

Q46: Considering the fact that many barriers to

Q47: In the early 1980s,Honda,the Japanese automobile company,built

Q48: Also,MNCs often find it profitable to locate

Q49: A classic example for trade barrier-motivated FDI

Q50: Alternatives to firms locating production overseas include<br>A)exporting

Examlex

ExamLex

About UsContact UsPerks CenterHomeschoolingTest Prep

Work With Us

Campus RepresentativeInfluencers

Links

FaqPricingChrome Extension

Download The App

Get App StoreGet Google Play

Policies

Privacy PolicyTerms of ServiceHonor CodeCommunity Guidelines

Scan To Download

qr-code

Copyright © (2025) ExamLex LLC.

Privacy PolicyTerms Of ServiceHonor CodeCommunity Guidelines