a) b) c) d) e) f) Which statement about politically vulnerable products is corre
ID: 344107 • Letter: A
Question
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b)
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Which statement about politically vulnerable products is correct? O The only types of products which are politically vulnerable are those which can affect national security or the safety of the population O Common food products such as sugar or soft drinks are not likely to be politically vulnerable o Any type of product can be vulnerable, depending upon the desirability of the product by the government Politically vulnerable products often face no competition locally; this is why they are vulnerable.Explanation / Answer
PLEASE FIND ANSWERS TO FIRST 2 QUESTIONS :
Products that have or are perceived to have an effect on the environment, exchange rates, national and economic security and the welfare of people, and that are publicly visible or subject to public debate, are more likely to be politically sensitive or vulnerable.
Therefore , Politically vulnerable products are more than those which affect national security or safety of population. Hence option #a is ruled out
Politically vulnerable product does not mean that they are desirable by government. Therefore option # b is rules out
There is linkage between politically vulnerable product and type of competition being faced locally. Therefor option #d is ruled out
The correct answer therefore is common food products such as sugar and soft drinks which are not considered to be politically vulnerable products
ANSWER : Common food products such as sugar or soft drinks are not likely to be politically vulnerable
Political risk is the risk an investment's returns could suffer as a result of political changes or instability in a country. Instability affecting investment returns could stem from a change in government, legislative bodies, other foreign policy makers or military control. Political risk is also known as "geopolitical risk," and becomes more of a factor as the time horizon of an investment gets longer.
Therefore correct answer is “Political Risk”
ANSWER : POLITICAL RISK
ANSWER : Common food products such as sugar or soft drinks are not likely to be politically vulnerable
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