The risks of doing business are most likely to be the highest in a cou

QUESTION

The risks of doing business are most likely to be the highest in a country that:

A. has low inflation rates.

B. supports high living standards.

C. has only one ethnic nationality.

D. protects intellectual property.

E. faces frequent changes in government and government policy.

ANSWER

E
Social unrest can result in abrupt changes in government and government policy or, in some cases, in protracted civil strife. Such strife tends to have negative economic implications for the profit goals of business enterprises.