Deal of The Day! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: SAVE25
Welcome to Pass4Success

- Free Preparation Discussions
Mail Us support@pass4success.com
Location US
Mob_nav_barsMENU

CIMA Exam CIMAPRO19-P03-1 Topic 5 Question 93 Discussion

Actual exam question for CIMA's CIMAPRO19-P03-1 exam
Question #: 93
Topic #: 5
[All CIMAPRO19-P03-1 Questions]

FGT is evaluating the political risks associated with its operations around the world.

Which of the following would indicate that a particular subsidiary has a high level ofpolitical risk?

Show Suggested Answer Hide Answer
Suggested Answer: A, B, C

by Winfred at Jul 09, 2025, 02:50 PM

Limited Time Offer

25%

Off

Get Premium CIMAPRO19-P03-1 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel
Angelyn
24 days ago
Haha, C is a classic trap answer. 'Lax company law' might mean less red tape, but it could also mean less protection for foreign businesses. B is the way to go.
upvoted 0 times
...
Wilda
30 days ago
I think both factors are important in assessing political risk, along with the lax company law in the host country.
upvoted 0 times
...
Francesco
1 months ago
That's true, having to rely on local partners can make the subsidiary vulnerable to political changes.
upvoted 0 times
...
Taryn
1 months ago
But what about the requirement for local partners to operate? That could also indicate high political risk.
upvoted 0 times
...
Wilda
1 months ago
I agree with Francesco, political instability during elections can pose a risk.
upvoted 0 times
...
Francesco
2 months ago
I think forthcoming elections in the host country would indicate high political risk.
upvoted 0 times
...
Annette
2 months ago
D seems like an odd choice. Being far from the home country doesn't necessarily mean higher political risk. I'd go with B as well.
upvoted 0 times
Mariann
25 days ago
C) Company law in the subsidiary host country is lax.
upvoted 0 times
...
Jani
26 days ago
B) The subsidiary's host country requires the active participation of local partners before the subsidiary can operate.
upvoted 0 times
...
Lera
28 days ago
A) Forthcoming elections in the subsidiary's host country.
upvoted 0 times
...
...
Kimberlie
2 months ago
I think the answer is B. Requiring local partners indicates the government wants to maintain control and influence over foreign operations, which can increase political risk.
upvoted 0 times
Sabine
28 days ago
That's true, elections can bring uncertainty and instability, which are factors in political risk.
upvoted 0 times
...
Leigha
29 days ago
But what about forthcoming elections in the host country? Wouldn't that also indicate high political risk?
upvoted 0 times
...
Almeta
30 days ago
I agree, having local partners can increase political risk.
upvoted 0 times
...
...

Save Cancel