Which of the following is not a strategy that could be used by an MNC to reduce its exposure to a host government takeover?
A) Attempt to recover cash flows from a foreign investment as quickly as possible
B) Rely on unique supplies and/or technology
C) Hire local labor
D) Borrow local funds
E) All of the above are strategies to reduce an MNC's exposure to a host government takeover.

Question

Quizplus · Accepted Answer

All of the strategies listed are ways in which an MNC can reduce its exposure to a host government takeover. Attempting to recover cash flows quickly can decrease the MNC's overall investment and limit the potential for losses. Relying on unique supplies or technology can make it difficult for the government to seize control of the resources. Hiring local labor can demonstrate a commitment to the local community and make it more difficult for the government to argue that the MNC is exploiting the country. Borrowing local funds can help the MNC build relationships with local financial institutions, which may make it more difficult for the government to take control.

Which of the Following Is Not a Strategy That Could