Companies Can Reduce Loss from Expropriation

question 30

Multiple Choice

Companies can reduce loss from expropriation:

• A) by expecting low returns from high risk foreign subsidiaries.
• B) by establishing foreign subsidiaries in countries with volatile exchange rates.
• C) by financing the foreign subsidiary using foreign currencies.
• D) by obtaining insurance against economic losses from expropriation.
• E) by investing all the funds in one foreign subsidiary.

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Definitions:

Organizational Cultures

The shared values, beliefs, norms, and practices that shape the social and psychological environment of an organization, influencing its members' behavior and attitudes.

Assimilation

The process by which individuals or groups of different backgrounds come to adopt the culture, beliefs, and practices of a larger community or society.

Organizational Culture

The shared values, beliefs, and practices of an organization's members that shape its social and psychological environment.

Tangible Assets

Physical and material assets owned by a company, such as buildings, machinery, and inventory, which have a defined monetary value and can be physically touched.