To reduce the exposure to a host government takeover, an MNC may attempt to recover cash flows from the foreign project more quickly or hire local labor.

Question

Quizplus · Accepted Answer

By recovering cash flows more quickly or hiring local labor, the MNC can minimize its long-term investment in the foreign project, reducing the potential impact of a government takeover. This is a common strategy for managing political risk in international business.

To Reduce the Exposure to a Host Government Takeover, an MNC