To best reduce exposure to a host government takeover, a subsidiary could:
A) use a long-run profit perspective for business in that country.
B) hire people from its own country (where the parent is located).
C) attempt to obtain supplies from its parent for which substitutes are not available.
D) borrow funds from its parent rather than from the host country's creditors.

Question

Quizplus · Accepted Answer

By obtaining supplies from its parent for which substitutes are not available, the subsidiary makes itself more valuable and indispensable to the host country, reducing the likelihood of a government takeover.

To Best Reduce Exposure to a Host Government Takeover, a Subsidiary