Question

In: Finance

How are MNCs subject to political risk? Stated differently, in what areas in a country are...

How are MNCs subject to political risk? Stated differently, in what areas in a country are MNCs exposed when it comes to political risk?

SELECT APPROPRIATE ANSWERS:

I. Group of answer choices

II. Macro Risk

III. Micro Risk

IV. Indeterminate Risk

V. Time-invariant Risk

Solutions

Expert Solution

Macro risk is related to also systematic risk and the risk related to economy and political risk is one of the risk which is included in the macro risk.

It can also be concluded under time-variant risk because due to the change of the time and the change of the regulation there will be a political risk.

Correct answer will be option (II) Macro risk and (V) time-variant risk.


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