Political risk is unique to multinational firms

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1. Political risk is unique to multinational firms: it is also a risk faced by domestic companies when domestic government regulations or laws change.

True False

2. Political and business risks, but not cultural risks, increase the difficulties of forecasting future cash flow for expanded operations in foreign countries.

True False

3. The hiring of local citizens instead of bringing in foreign expatriates is often a necessary part of doing business abroad.

True False

Reference no: EM131606197

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