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  • QA-15. Impact of Political Risk

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    QA-15. Impact of Political Risk

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    QA-15. Impact of Political Risk

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    15. Impact of Political Risk. Explain why political risk may discourage international business.

    ANSWER: Political risk increases the rate of return required to invest in foreign projects.
    Some foreign projects would have been feasible if there was no political risk, but will not be
    feasible because of political risk.

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