FGT is evaluating the political risks associated with its operations around the world.

CIMA P3 Question Answer

Which of the following would indicate that a particular subsidiary has a high level of political risk?

Forthcoming elections in the subsidiary's host country.

The subsidiary's host country requires the active participation of local partners before the subsidiary can operate.

Company law in the subsidiary host country is lax.

The subsidiary is located a considerable distance from FGT's home country.

The subsidiary employs a large number of nationals from the host country.

P3 PDF/Engine

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