Eurenasia is a country that has frequently been assigned low macro-assessment ratings of country risk in the recent past due to its tendency to war with neighboring nations. MNC A is considering the establishment of a subsidiary to manufacture tablet computers in Eurenasia, while MNC B is considering the establishment of a subsidiary to manufacture tanks there. Which of the two MNCs is likely to be less affected by the low macro-assessment?

Question

Eurenasia is a country that has frequently been assigned low macro-assessment ratings of country risk in the recent past due to its tendency to war with neighboring nations. MNC A is considering the establishment of a subsidiary to manufacture tablet computers in Eurenasia, while MNC B is considering the establishment of a subsidiary to manufacture tanks there. Which of the two MNCs is likely to be less affected by the low macro-assessment?​

Quizplus · Accepted Answer

MNC B, which is considering manufacturing tanks, is likely to be less affected by the low macro-assessment ratings due to Eurenasia's tendency to war. The demand for military equipment like tanks could potentially increase in a country frequently involved in conflicts, making the business environment more favorable for MNC B compared to MNC A, which plans to manufacture tablet computers.

Eurenasia Is a Country That Has Frequently Been Assigned Low