BGL Enterprises, a global firm, operates a facility in Angola. Managers want to reduce the firm's vulnerability to political risk in Angola. All of the following actions would most likely accomplish this task except ________.

Question

Quizplus · Accepted Answer

Purchasing capital equipment outright increases the firm's asset exposure in the country, making it more vulnerable to political risk rather than reducing it. Other options like reducing net investment, buying inputs locally, and being a good corporate citizen can help mitigate political risk.

BGL Enterprises, a Global Firm, Operates a Facility in Angola