Executives at Octagon Telecom, a global telecommunications firm, are considering investing in a telephone company located in Rwanda. However, many stockholders have expressed concerns about the political risk involved in such an investment. Which of the following would most likely provide political risk insurance to Octagon?
A) International Development Association
B) African Development Bank
C) International Monetary Fund
D) Multilateral Investment Guarantee Agency

Question

Quizplus · Accepted Answer

The Multilateral Investment Guarantee Agency (MIGA) is part of the World Bank Group and offers political risk insurance and credit enhancement to investors and lenders to facilitate foreign direct investments in emerging economies, which directly addresses the concerns of Octagon Telecom's stockholders regarding political risk in Rwanda.

Executives at Octagon Telecom, a Global Telecommunications Firm, Are Considering