Parajumble
Verbal Ability

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Q.

1). Risk-stemming from fluctuations in exchange rate loans hover constantly on the horizon of foreign investment.

2). In view of the higher risk, a firm contemplating foreign investment would naturally expect a higher rate of return.

3). A multinational company may be accused of 'profiteering' even when it may simply be following the sound financial practice of asking for a higher rate of return commensurate with risks characterizing the project.

4). In addition, a foreign investment is subject to discriminatory treatment and selection control in various forms.

 A.

1423

 B.

3421

 C.

1324

 D.

2134

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Solution:
Option(A) is correct

1 introduces the topic risk of foreign investment and 4 continues to explain further risks, 3 must follow 2 as it illustrates the statement 3.


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