Which strategy 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

Question

Quizplus · Accepted Answer

Expanding the investment base involves engaging multiple investors and banks, which can provide a collective shield against political risks such as government takeovers or harassment. This strategy dilutes the risk by involving local or international stakeholders whose interests align with protecting the investment.

Which Strategy to Minimize Political Vulnerability and Risk Has the Advantage