Which of the following ways can an MNE adopt to reduce its exposure to political risks in its host country?
A)By threatening to cease all exports of its products to the host country
B)By establishing more than one affiliate in the host country
C)By equating its physical assets in the host country with its local borrowings
D)By negotiating with the host country's government to clear off its debts

Question

Quizplus · Accepted Answer

Equating physical assets with local borrowings can help an MNE hedge against political risks by aligning its financial interests with local stakeholders, potentially reducing the impact of adverse political actions.

Which of the Following Ways Can an MNE Adopt to Reduce