Which of the following environmental factors would most likely increase the risk for a firm that has established a fully owned subsidiary in a country?
A)expropriation threats
B)unreliable distributors
C)infrastructure weaknesses
D)quality control issues

Question

Quizplus · Accepted Answer

Expropriation refers to the government seizure of a company's assets without compensation. This poses a significant risk to a fully owned subsidiary as it may lose its investments and operations in the country. Other factors such as unreliable distributors, infrastructure weaknesses, and quality control issues may also affect the subsidiary, but they would not pose as significant a risk as expropriation.

Which of the Following Environmental Factors Would Most Likely Increase