Question

Many companies in Dansland retracted their businesses as the government passed a new law requiring the companies to pay double the tax for conducting business in Dansland.​ This is a _____ that the companies doing business in Dansland have faced.

Answer 1

The problem that companies doing business in Dansland are facing is of policy uncertainty.

Step-by-step explanation:

Policy uncertainty which is also know as regime uncertainty, can be defined as a class of economic risk, which arises due to the uncertainty in the government policy, which increases a company's systematic risk and causes them to stop their investment and business in that country. Same policy uncertainty ( double taxation ) has caused companies in Dansland to stop their business.