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Capital flight can occur for varieties of reasons. To prevent capital flight, which one of the following would NOT be a constructive measure governments may
Capital flight can occur for varieties of reasons. To prevent capital flight, which one of the following would NOT be a constructive measure governments may take? 1) cutting budget deficits 2) impose comprehensive capital controls 3) sell off state-owned enterprises 4) allowing for freer trade A country is said to have low country-risk if it is associated with 1) an open economy 2) frequent changes of economic policies 3) unstable labour laws 4) lavish government spending One of the measures on the country's risk level is using the Business Environment Risk Intelligence (BERI)'s suggested POR (Profit Opportunity Recommendation) combined score, which tells the country risk level. Based on the BERI's country risk definition, which of the following countries has the lowest risk (or highest profit opportunity)? 1) Austria, POR Combined Score: 70 ( 2) Mexico, POR Combined Score: 65 3) Italy, POR Combined Score: 49 ( 4) United States, POR Combined Score: 60Common indicators of high country-risk include all Except O 1) policies motivating to save and invest ( 2) currency inconvertibility 3) easy monetary policy combined with fixed exchange rate ( 4) price controls and trade restrictions
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