Which of the following strategies is most effective in minimizing political risks for a multinational corporation in situations in which the technology is unique and the risk is high?
A) Trade embargo
B) Licensing
C) Expanding the investment base
D) Planned confiscation
E) Expropriation

Question

Quizplus · Accepted Answer

A strategy that some firms find eliminates almost all risks is to license technology for a fee. Licensing can be effective in situations in which the technology is unique and the risk is high. Of course, there is some risk assumed, because the licensee can refuse to pay the required fees while continuing to use the technology.

Which of the Following Strategies Is Most Effective in Minimizing