Which of the following statements is most likely to be true about the risks of doing business in a country?
A. Political risk is low in countries that contain more than one ethnic nationality.
B. Economic risks are independent of political risk.
C. One visible indicator of economic risk is the level of business and government debt in the country.
D. One visible indicator of legal risk tends to be a country's inflation rate.
E. Political risk tends to be low in those countries that have high inflation and falling living standards.
Ans: C. One visible indicator of economic risk is the level of business and government debt in the country.
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