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:

Corporate Reinvestment

The act of a company using its profits to invest back into its own operations, projects, or assets to support growth, improve products or services, and enhance shareholder value.

Company Stock

represents shares of ownership in a corporation, giving holders a claim on part of the company’s assets and earnings.

Configuration

The arrangement or set-up of components or elements in a particular form or structure.

Multinational Company

A corporation that operates in several countries but has its headquarters in one country, often involved in producing and selling goods or services in various markets.