a. Review the political risk factors, and identify those that could possibly affect your business. Explain how
Question:
b. Explain why any threats of terrorism due to friction between two countries could possibly your business, even if the terrorism has no effect on the relations between the U.S. and Mexico.
c. Assume there is an upcoming election in Mexico that may result in a complete change in government.
d. Explain why such an election can have significant effects on your cash flows.
Political Risk
Political risk is the risk an investment's returns could suffer as a result of political changes or instability in a country. Instability affecting investment returns could stem from a change in government, legislative bodies, other foreign...
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a If the attitude of consumers in Mexico toward the US or other Englishspeaking count...View the full answer
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