Which of the following reduces the threat of appropriation associated with political risk?
A) the entrant is large and well connected within the host country and internationally
B) powerful entrepreneurs in the country benefit from trade liberalization
C) the firm's investment is not associated with a notable redistribution of wealth
D) all of the above

Question

Quizplus · Accepted Answer

All the options listed reduce the threat of appropriation associated with political risk by either leveraging connections, aligning interests with powerful local figures, or avoiding triggering wealth redistribution concerns.

Which of the Following Reduces the Threat of Appropriation Associated