Asked by mykeria adkins on Apr 28, 2024
Verified
________ refers to the possibility of expropriation of assets, changes in tax policy, and the possibility of restrictions on foreign exchange transactions.
A) Default risk
B) Foreign exchange risk
C) Market risk
D) Political risk
E) None of the options are correct.
Expropriation
The act of a government taking privately owned property, often without fair compensation, for the public good.
Foreign Exchange Transactions
Trades between different currencies, involving the exchange of currency from one country for that of another at an agreed rate.
Tax Policy
The set of laws and regulations that govern how taxes are collected, the rates, exemptions, and incentives, impacting individuals and businesses.
- Identify and understand the types of risks associated with international investing, including political and foreign exchange risks.
Verified Answer
Learning Objectives
- Identify and understand the types of risks associated with international investing, including political and foreign exchange risks.
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