Jackson Owns a Business in a Foreign Country That Is

question 52

Multiple Choice

Jackson owns a business in a foreign country that is considered "friendly" with the U.S.but which has significant political unrest.Jackson is uneasy about the situation in the country.He is concerned that his business could be the subject of a taking by the foreign country or losses due to civil unrest.What advice would you give him?

• A) He should seek insurance through the Foreign Insurance Services Company, a privately run insurance company specializing in foreign risk.
• B) He should do nothing at the present, but seek reimbursement through the U.S.government should losses be incurred.
• C) He should seek insurance through the Overseas Private Investment Corporation, a U.S.government agency specializing in providing insurance for foreign risk.
• D) He should sell the company and leave the country because insurance is not available

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Definitions:

Strategy Formulation

The process of creating strategies to be implemented by an organization to achieve long-term goals.

Organizational Environment

The set of external and internal factors that influence an organization's operating situation, including regulatory, economic, social, and technological factors.

Product and Service Mix

The combination of products and services a company offers to meet the needs of its customers.

Facilities Locations

The process of deciding the geographical placement of operations, factories, or offices of a business.