Which of the Following Strategies to Minimize Political Vulnerability and Risk

question 55

Multiple Choice

Which of the following strategies to minimize political vulnerability and risk has the advantage of engaging the power of several investors and banks in the host country whenever any kind of government takeover or harassment is threatened?

• A) Joint ventures
• B) Licensing
• C) Expanding the investment base
• D) Sole proprietorship
• E) Political bargaining

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Definitions:

Economic Profit

The difference between a firm's total revenues and its total economic costs, including both explicit and implicit costs.

Diagram (A)

A graphical representation or chart designed to illustrate or explain concepts, processes, or data.

Allocative Inefficiency

A situation in which resources are not distributed optimally among producers or consumers, leading to a loss in economic efficiency.

Profit-Maximizing Output

The point of production where a company reaches its maximum profit, occurring when marginal cost is equal to marginal revenue.