Which strategy is most effective in minimizing political risks for a multinational corporation in situations in which the technology is unique and the risk is high?
A) trade embargo
B) licensing
C) expanding the investment base
D) planned confiscation
E) expropriation

Question

Quizplus · Accepted Answer

Licensing allows a multinational corporation to minimize political risk by sharing technology with a local entity, thus reducing the direct investment and exposure in a volatile market. This strategy is particularly effective when the technology is unique and the risk of political interference is high, as it limits the corporation's vulnerability to adverse government actions while still enabling it to benefit from the local market.

Which Strategy Is Most Effective in Minimizing Political Risks for a Multinational