Answer: False
Explanation:
''Economic risks relate to difficulties inherent in managing the complex resource flows required by most international firms''.
The statement above is NOT true, that is, it is false. So, let us take one or two things you need to know about ECONOMIC RISKS.
ECONOMIC RISKS: when an investment is exposed to some certain conditions known as the macroeconomic factors/conditions on a foreign land/country which may affect the investment, this exposure is known as economic risks. Such macroeconomic factors include Government or political policies, swings in exchange rates and so on.
TYPES OF ECONOMIC RISK: there are many types of economic risk, I am just going to mention few of them, and they are; Market Prices, Duty Rates, cost of materials, credit risks, minimum wage and so on.
===> Economic risks DOES NOT relate to difficulties inherent in managing the complex resource flows required by most international firms BUT they are risks in which investments in foreign country are exposed to.
