Which one of the following is the best advice for the MNC that wants to structure an investment so as to minimize the chance that political risk events will adversely affect the firm?

Question

Quizplus · Accepted Answer

Using local resources can help to build a stronger relationship with the government and local community, decreasing the likelihood of adverse political events. It can also help to mitigate perceived negative impacts of the MNC on local economies and environments. Focusing on the long term is also a good strategy, but it may not directly address political risk events. Relying on common available supplies is not necessarily relevant to political risk events, and refusing to bargain with the government could actually increase the likelihood of adverse political events.

Which One of the Following Is the Best Advice for the MNC