Which of the statements below is FALSE?
A) Political risk involves changes in a foreign government.At one extreme is the case in which a local government "takes over" the assets of the company and nationalizes it.
B) Political risk involves changes in a foreign government.An extreme example is the case in which a government encourages foreign investment and gives breaks to companies willing to move operations locally.
C) There are three basic defensive mechanisms that can guard against the extreme case of nationalized assets.These include keeping critical operations private,financing operations and assets with local money,and receiving primary inputs outside the local economy.
D) One way that a multinational firm can minimize the potential of nationalization of assets by a foreign government is to share key elements of operations with the government.
Correct Answer:
Verified
Q3: The difficulties of managing international business operations
Q4: _ involves the changes in a foreign
Q5: In regard to the cultural risks related
Q6: As we go from home operations to
Q7: Nepotism can be a problem for an
Q9: The _ refers to the price of
Q10: One way to minimize the threat of
Q11: Although domestic firms face political risk,we tend
Q12: Specific issues related to cultural differences can
Q13: _ arise(s)from differences in customs,social norms,attitudes,assumptions,and expectations
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