ABC Inc., a company based in the United States, operates a subsidiary in Egypt. ABC is dealing with a loss of investment and control over its assets in Egypt due to instability and political changes. Which of the following is ABC Inc. facing?
A) Cultural integration issues
B) Globalization
C) Political risk
D) Competitive threat

Question

Quizplus · Accepted Answer

ABC Inc. is facing political risk in Egypt due to instability and political changes. This refers to the risk of loss of investment and control over assets due to changes in the political environment, policies, or regulations in a foreign country. Cultural integration issues refer to challenges related to integrating people from different cultures in a company, globalization refers to the process of increasing interconnectedness and interdependence among countries, and competitive threat refers to competition from other companies.

ABC Inc, a Company Based in the United States, Operates a a Subsidiary