Companies involved in international capital budgeting projects can minimize political risks by structuring the investment as a joint venture and selecting a well-connected local partner.

Question

Quizplus · Accepted Answer

Joint ventures allow for shared risk and resources with a local partner who is familiar with the political and economic landscape, thus reducing political risks. Additionally, a well-connected local partner can provide valuable insights and contacts for navigating potential political obstacles.

Companies Involved in International Capital Budgeting Projects Can Minimize Political