If there is an improve in economic condition in foreign countries, the local community of investors start ____________?
Correct answer: A. investing abroad
- A. investing abroad
- B. investing in domestic markets
- C. increase in sovereign risk
- D. increase in country risk
Explanation
Better economic conditions abroad can make foreign investments more attractive or profitable, encouraging local investors to invest abroad. Sovereign and country risk do not increase merely because foreign conditions improve.
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About Business Finance
Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
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