Which of the following means of adaptation to political risk requires that a firm actively involve nationals in the management of its subsidiary?

Question

Quizplus · Accepted Answer

Participative management involves actively involving nationals in the management of the subsidiary, thereby reducing political risk. Equity sharing involves sharing ownership and control of the subsidiary with nationals, localization of the operation involves adapting to local customs and culture, and development assistance involves providing assistance to the host country to develop infrastructure and skills. While these can also help reduce political risk, they do not necessarily require active involvement of nationals in the management of the subsidiary.

Which of the Following Means of Adaptation to Political Risk