U.S.-based MNCs could avoid country risk by simply avoiding international business.

Question

Quizplus · Accepted Answer

This statement is technically true, as U.S.-based MNCs could avoid country risk by only doing business within the United States. However, avoiding international business may not be a feasible option for most MNCs, as it could limit their growth opportunities and profitability. MNCs often engage in international business to access new markets, lower costs, and diversify their operations. Therefore, while avoiding international business may eliminate country risk, it may not be the best strategic decision for MNCs.

US-Based MNCs Could Avoid Country Risk by Simply Avoiding International