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A higher dependence on a single commodity makes a country's overall economy more vulnerable to changes in demand or prices of that commodity. Which of the following statements about country risk is correct?
A
A higher dependence on a single commodity makes a country's overall economy more vulnerable to changes in demand or prices of that commodity.
B
A legal system that provides for lawsuits against firms and their management increases country risk.
C
Firms prefer to invest in countries where the legal system is biased or subject to government interference.
D
Declining credit spreads signal credit quality deterioration.
