Which of the following factors is most likely to make a country a more attractive location for international business?

• A. Frequent currency fluctuations
• B. High levels of trade barriers
• C. Stable political environment
• D. Limited access to infrastructure

Answer: (C)

Verified step by step guidance

1. Understand the context: International businesses seek locations that minimize risks and costs while maximizing potential for stable operations and profitability.
2. Analyze the impact of frequent currency fluctuations: These create uncertainty in costs and revenues, making a country less attractive for international business.
3. Consider high levels of trade barriers: These increase costs and restrict market access, which discourages international business activities.
4. Evaluate the importance of a stable political environment: Stability reduces risks related to policy changes, expropriation, or civil unrest, making the country more attractive for investment and business.
5. Assess limited access to infrastructure: Poor infrastructure increases operational costs and reduces efficiency, which is a deterrent for international businesses.