Which of the following conditions is most likely to act as a deterrent for foreign firms willing to do business with former Communist nations of East Europe and central Asia?
A) The high levels of economic development in these countries
B) The signs of growing unrest and totalitarian tendencies seen in these countries
C) A strong commitment to market-based economic systems seen in these countries
D) The collapse of communism in these countries
E) Low returns involved in doing business in these countries

Question

Quizplus · Accepted Answer

Signs of growing unrest and totalitarian tendencies in former Communist nations of East Europe and central Asia are likely to act as a deterrent for foreign firms willing to do business. This is because such conditions can create instability and uncertainty in the business environment, making it difficult for firms to operate effectively and profitably. High levels of economic development (A), a strong commitment to market-based economic systems (C), and the collapse of communism (D) are all factors that can create opportunities for foreign firms rather than acting as deterrents. Low returns (E) may also be a factor, but it is not as significant as political instability and totalitarian tendencies.

Which of the Following Conditions Is Most Likely to Act