Question

Indonesia restricts foreign investment in certain industries such as tourism and alcoholic beverage. Investment in other...

Indonesia restricts foreign investment in certain industries such as tourism and alcoholic beverage. Investment in other industries requires obtaining special permission from Indonesia's central government. This example shows the type of country risk produced by ________.

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Answer #1

In this case, Indonesia restricts foreign investment in certain industries such as tourism and alcoholic beverage investment in other industries required for obtaining special permission from Indonesia central government so here this example shows the type of country risk produced by.
Trade restrictions
Quota restrictions
Embargoes
These restrictions can create a revenue loss for the Indonesian economy because when there is a restriction on free trade then it is very difficult for the countries to make proper foreign direct investment and it will hamper the future economic plans of the expansion of projects and the developmental schemes of the government.

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