While expanding the investment base of a company, which of the following can be used as a powerful ally in dealing with threats of government takeovers or harassment?
A) Banks that have lent money to the host government
B) The World Trade Organization
C) The International Labor Organization
D) Regional trade blocs
E) Opposing political parties

Question

Quizplus · Accepted Answer

Including several investors and banks in financing an investment in the host country is an effective strategy to lessen the political vulnerability of a company. This approach has the advantage of engaging the power of the banks whenever any kind of government takeover or harassment is threatened. This strategy becomes especially powerful if the banks have made loans to the host country; if the government threatens expropriation or other types of takeover, the financing bank has substantial power with the government.

While Expanding the Investment Base of a Company, Which of the Following