Within the same country, some foreign businesses may fall prey to politically induced harassment, while others may be placed under a government umbrella of protection and preferential treatment. What factor explains this difference?
A) the level of domestication achieved
B) the differences in level of technology between the two countries
C) the cultural differences between the host nation and the business's home country
D) the import tariffs set by the host country
E) the evaluation of a company's contribution to the nation's interest

Question

Quizplus · Accepted Answer

The key factor explaining why some foreign businesses might receive preferential treatment while others face harassment is the evaluation of the company's contribution to the nation's interest. Governments are likely to protect and favor businesses that are perceived to significantly benefit the national economy, strategic sectors, employment, or technological advancement, among other interests.

Within the Same Country, Some Foreign Businesses May Fall Prey