International Corporate Finance & Political Risk

Instructions:

Choose an answer and hit 'next'. You will receive your score and answers at the end.

question 1 of 3

The most common political risk of doing business in another country is which of the following?

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1. Which of the following is a political risk to a company's bottom line?

2. Henri owns a multinational company that does business in a country where a civil war just broke out. As a result, Henri is likely to see a drop in which of the following?

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About This Quiz & Worksheet

There are different political risks in international finance, and you can use the worksheet and quiz to gauge our knowledge of these risks and their effects.

Quiz & Worksheet Goals

The goal of these materials is to check your knowledge of:

  • The country that should offer the highest return for a company
  • How civil war could impact a company doing business in another country
  • A political risk to a company's bottom line
  • A factor that influences rates of return
  • How political risk and return are related in international business

Skills Practiced

  • Reading comprehension - ensure that you draw the most important details from the lesson on international finance and its political risks
  • Information recall - access the knowledge you have gained about the effects of a country troubled with civil war
  • Interpreting information - verify that you can read information about a common political risk of doing business in another country and interpret it correctly

Additional Learning

Use the lesson named International Corporate Finance & Political Risk to review more about these risks. Some objectives you can cover include:

  • Determine what a political risk is
  • Understand why companies invest their money internationally
  • Review the relationship between risky countries and investment opportunities
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