Which of the Statements Below Is FALSE

question 28

Multiple Choice

Which of the statements below is FALSE?

• A)Political risk involves changes in a foreign government.At one extreme is the case in which a local government "takes over" the assets of the company and nationalizes it.
• B)Political risk involves changes in a foreign government.An extreme example is the case in which a government encourages foreign investment and gives breaks to companies willing to move operations locally.
• C)There are three basic defensive mechanisms that can guard against the extreme case of nationalized assets.These include keeping critical operations private,financing operations and assets with local money,and receiving primary inputs outside the local economy.
• D)One way that a multinational firm can minimize the potential of nationalization of assets by a foreign government is to share key elements of operations with the government.

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Definitions:

Membership Homogeneity

The degree to which members of a group or team share similar characteristics or backgrounds, which can affect group dynamics and performance.

Team Goals

Objectives set by a group of individuals working together, which are intended to guide and motivate the team towards common achievements.

Task Activities

The specific actions or work carried out by individuals or groups to achieve a particular goal or task.

Team Performance

The measure of how well a group of individuals works together to achieve common goals and objectives.