Question

The following are means of political risk adaptation EXCEPT: Equity sharing shared ownership or partial ownership with nationals Localization of operations modifications to the company's management style, company name, etc., to accommodate national issues Expatriate management to achieve higher transparency Development assistance corporate aid for infrastructure development.

Answer 1

Answer: Expatriate management to achieve higher transparency

Explanation:

The means of political risk adaption are:

Equity sharing shared ownership or partial ownership with nationals.

This involves the financing of subsidiaries with help of local firms, financial institutions, trade unions, and government. These groups will ensure that political developments does not disturb the operations of the business.

Localization entails the modification of operations, product mix, or other activity to suit the local tastes and culture. For example, when McDonald’s began franchisee operations in India, the company ensured that the sandwiches does nott contain any beef.

Development assistance includes the company's active involvement in the infrastructure development. Offering development assistance will allow the international business to help the host country improve its quality of life.

Therefore, expatriate management to achieve higher transparency isn't included in the means of political risk adaptation.

Answer 2

Answer:

Expatriate management to achieve higher transparency

Explanation:

Political adaptation is a process by which a business integrates local employees in its operations so that they will be accepted more in the country where they do business.

The main aim is to engage more of local people and resources to enhance acceptance.

The four steps in this process are:

Equity sharing shared ownership or partial ownership with nationals

Localization of operations modifications to the company's management style, company name, etc., to accommodate national issues

Development assistance corporate aid for infrastructure development.

Participative management by involving locals in management of the subsidiary