A firm wants to build a subsidiary in the Middle East. However, it is apprehensive because of protests in some Middle Eastern countries and the violence in Syria. It does not know if it should take the risk of expanding. Which type of barrier does this situation represent?
A) economic
B) competitive
C) legal and regulatory
D) political
E) sociocultural

Question

Quizplus · Accepted Answer

The situation described represents a political barrier, as there is political unrest and violence in some Middle Eastern countries, which can create risks and uncertainties for the firm's expansion plans.

A Firm Wants to Build a Subsidiary in the Middle