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Josette Dacius Joachim
on Oct 22, 2024

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___is the potential loss in value of foreign investment due to instability and political changes in the host country.

A) Greenfield investment
B) Political risk
C) Protectionism
D) Global sourcing
E) none of the above

Political Risk

The risk of losing assets, earning power, or managerial control as a result of political actions or instability in the country of operation.

Greenfield Investment

Direct investment in new facilities or the expansion of existing facilities in a foreign country, starting from scratch.

Global Sourcing

Global sourcing is the practice of sourcing goods and services from the global market, capitalizing on global efficiencies such as cheaper labor or raw materials.

  • Understand the concept of political risk and its implications on international business.
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Nykevia DashaeOct 26, 2024
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