Question

o best reduce exposure to a host government takeover, a subsidiary could: a. hire people from its own country (where the parent is located). b. attempt to obtain supplies from its parent for which substitutes are not available. c. use a long-run profit perspective for business in that country. d. borrow funds from its parent rather than from the host country's creditors.

Answer 1

Answer:

The correct answer is : B.  attempt to obtain supplies from its parent for which substitutes are not available.

Explanation:

The Government in this situation can impose taxes, restrict bank transfers and subsidize local firms- There is another risk in which parents may need to exchange earnings for goods. Also, the operations can be affected by the recession in the country.