True or False ?

T F 12. Country risk is the likelihood that changes in a foreign business environment will occur and will reduce the profitability of an overseas investment. T F 13. Currency inconvertibility is one effect of political risk. T F 14. Market potential is an example of an economic risk measure. T F 15. Countries with high income per capita, even income distribution, and a broad economic base have stable political risk. T F 16. One risk for exporters is foreign exchange risk. T F 17. Letter of credit is an order written by an exported requesting an importer to pay a specified amount of money at a specified time. T F 18. A bill of lading is the shipping documents issued to the exporting firm or its bank by a common carrier that transports the goods. T F 19. Large multinational companies must compromise with complexity when managing the multinational financial system. T F 20. Reasons for misallocated cash are having surplus funds in low need areas and having a shortage of funds in high need areas