Question
3. 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
3. 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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