A form of multinational corporation (MNC) that exposes the firm to the least amount of political risk, and is therefore the preferred arrangement by both business and foreign governments, is called
A) an exporter.
B) a licensing agreement.
C) a joint venture.
D) a fully owned foreign subsidiary.

Question

Quizplus · Accepted Answer

A joint venture often exposes the firm to less political risk because it involves partnership with local companies, which can facilitate smoother operations in the host country by leveraging the local partner's knowledge, relationships, and resources. This arrangement is generally more favorable to both the foreign business entering the market and the host country's government, as it can lead to technology transfer, local employment, and development.

A Form of Multinational Corporation (MNC) That Exposes the Firm