Which of the following is most likely to be true about the overall attractiveness of a country as a potential market or investment site for an international business?
A)The potential long-run benefits of doing business in a foreign country are independent of the country's future economic growth rates.
B)The costs and risks associated with doing business in a foreign country are highest in economically advanced democratic nations.
C)Economic growth tends to be higher in a centrally planned command economy system than in a free market system.
D)The risks associated with doing business are low in developing nations where the governments have huge debts.
E)The costs and risks associated with doing business in a foreign country tend to be greater in politically unstable nations.

Question

Quizplus · Accepted Answer

Political instability can lead to unpredictable changes in government policies, violence, and other disruptions that can make it challenging or risky to operate a business in that country. This makes the costs and risks associated with doing business in politically unstable nations tend to be greater. The other options are not true or are too broad to make a clear judgment.

Which of the Following Is Most Likely to Be True