Renault Paid 1 Billion USD to Acquire a 25 Percent

question 15

Multiple Choice

Renault paid 1 billion USD to acquire a 25 percent ownership stake in the Russian automaker AvtoVAZ in 2008.Just one year later,Russian Prime Minister Vladimir Putin threatened to dilute the Renault ownership stake unless it contributed more money to prop up AvtoVAZ,which was then experiencing a significant slide in sales.This is an example of ________ risk.

• A) currency
• B) economic
• C) political
• D) management

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Definitions:

Generalization

The tendency to apply what is learned in one situation to other similar situations, often considered a fundamental learning process.

Spontaneous Recovery

The reappearance of a previously extinguished response after a period of non-exposure to the conditioned stimulus.

Observable Behavior

Actions or reactions of an individual that can be seen and measured by others.

Cognitive Processes

Mental activities involved in acquiring, storing, and utilizing knowledge, including perception, memory, language, and decision-making.