Question

which of the following best explains why india was once characterized by high country risk? a) taxes and financial incentives benefited indian businesses over foreign firms. b) the government of india imposes many restrictions on imports and inward foreign investment. c) indian business leaders distrusted most european corporations. d) indian leaders feared the modern influences of american firms.

Answer 1

Due to the government of India's numerous limitations on imports and inward foreign investment, India used to be considered a high nation risk.

Define a high country risk.

"Country risk" refers to the uncertainty associated with investing in a certain country, and more specifically, the possibility that this uncertainty may cause losses for investors. This unpredictability may be caused by a variety of elements, including political, economic, exchange-rate, or technical influences.

Country risks are any potential threats that might occur in a nation and have an effect on financial or security interests there. Social, political, and environmental risks are among these threats.

Due to government leaders' adoption of legislation that made foreign companies the focus of harassment, India used to be regarded as a high country risk.

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