Matata, a Japanese firm that manufactures automobile parts, was running at a loss in its offshore outlet in Mexico due to the governmental and civil disruptions in the country. Thus, it withdrew its business outlets from Mexico. At this opportunity, another Japanese firm, Lui Corporation, entered into business in Mexico. With this decision, Lui Corporation has made itself liable to _____.

Question

Quizplus · Accepted Answer

Lui Corporation has made itself liable to political risk by entering into business in Mexico, as seen from the troubles faced by Matata in the same country.

Matata, a Japanese Firm That Manufactures Automobile Parts, Was Running