Political Risk Can Be Reduced By

question 282

Multiple Choice

Political risk can be reduced by:

• A) Expanding a firm's Canada-only operations into a foreign country for the first time.
• B) Financing foreign operations in the foreign country.
• C) Structuring operations in such a way that successful operation of the subsidiary requires little parent company involvement.
• D) Locating only in countries that have nationalized foreign investments in the past since this reduces the likelihood that they will do so again.
• E) Paying bribes to foreign governments.

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Definitions:

Virginia

Virginia is a state in the Southeastern and Mid-Atlantic regions of the United States, known for its significant historical landmarks and diverse geography.

Common Law

A legal system based on court precedents and customs rather than written laws.

UCC

The Uniform Commercial Code, a comprehensive set of laws governing commercial transactions in the United States, intended to standardize and harmonize laws across states.

Trees

Perennial plants with elongated stems, or trunks, supporting branches and leaves.