Which of the following is not a way in which country risk analysis can be used?
A) to monitor countries where an MNC is currently doing business.
B) as a screening device to avoid conducting business in countries with excessive risk.
C) to revise an MNC's financing decisions.
D) to determine the degree to which the MNC is exposed to exchange rate movements.

Question

Quizplus · Accepted Answer

Country risk analysis is not used to determine the degree to which the MNC is exposed to exchange rate movements. This task is typically accomplished through a separate analysis called currency risk analysis. The other options—monitoring currently conducted business, screening for excessive risk, and revising financing decisions—are all potential uses of country risk analysis.

Which of the Following Is Not a Way in Which