In 1992, the Enron Development Corporation, a Subsidiary of the Houston-Based

question 27

Multiple Choice

In 1992, the Enron Development Corporation, a subsidiary of the Houston-based energy company, signed a contract to build the largest-ever power plant in India, requiring a total investment of $2.8 billion. After Enron had spent nearly $300 million, the project was canceled by Hindu nationalist politicians in the Maharashtra state where the plant was to be built. Which of the following are true?

• A)Subsequently, Maharashtra invited Enron to renegotiate its contract.
• B)The lack of an effective means of enforcing contracts in a foreign country is clearly a major source of political risk associated with FDI.
• C)In an effort to pressure Maharashtra to reverse its decision, Enron "pushed like hell" the U.S. Energy Department to make a statement in June 1995 to the effect that canceling the Enron deal could adversely affect other power projects. The statement only compounded the situation. The BJP politicians immediately criticized the statement as an attempt by Washington to bully India.
• D)All of the above

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Definitions:

Positive Self-Talk

The practice of making affirmative or supportive statements to oneself, often aimed at boosting confidence or morale.

Cognitive Therapy

A form of psychotherapy that aims to change negative patterns of thinking to improve a person's mood and behavior.

Solution-Focused Therapy

A form of psychotherapy that emphasizes finding solutions in the present time and exploring one’s hope for the future to find quicker resolutions of one's problems.

Personal Factors

Individual attributes including knowledge, skills, attitudes, and behaviors that influence a person's actions and responses to various situations.