Which of the Following Is an Example of a Protective

question 44

Multiple Choice

Which of the following is an example of a protective and defensive technique for responding to a political risk?

• A) Creating joint ventures and hiring local people to manage and run the operation
• B) Producing as much of a product locally as possible with the use of in-country suppliers and subcontractors, thus making it a "domestic" product
• C) Developing good relations with the host government and other local political groups
• D) Doing as little local manufacturing as possible and conducting all research and development outside the country

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Definitions:

Maximum Daily Production

The highest quantity of goods or services a company can produce in a single day under normal operating conditions.

Managerial Accounting

The phase of accounting concerned with providing information to managers for use within the organization.

Historical Perspective

An approach to understanding and analyzing events or subjects based on their development over time.

Just-In-Time (JIT) System

A production strategy that strives to improve a business's return on investment by reducing in-process inventory and associated carrying costs through the timely creation or acquisition of materials.