Risks of foreign subsidiaries include
A) The home country's expectations of long-term commitment
B) The home country's expectations that a number of foreign nationals be employed
C) Changing standards mandated by foreign regulations
D) A commitment to profits

Question

Quizplus · Accepted Answer

The changing standards mandated by foreign regulations can pose a risk to foreign subsidiaries as they may have to adjust and comply with new rules and requirements, which can be challenging and costly. The other options listed (A, B, and D) are all expectations or commitments that the home country may have for the foreign subsidiary, but they are not necessarily risks in and of themselves.

Risks of Foreign Subsidiaries Include