Question:Bertie has opened up an overseas subsidiary in Ruritania. However the directors have just been informed of a change in the Ruritanian tax laws whereby the 100% first year tax allowance on new capital investments has been abolished.
What type of risk is Bertie exposed to in this situation?
A. Fiscal risk
B. Economic risk
C. Regulatory risk
D. Cultural risk
The correct answer is: Fiscal risk.
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