Answer:
B. purchasing capital equipment outright
Explanation:
Option (b) will increases the investment in Mozambique and thus increasing the political risk.
Option (a) reduces the political risk since by being a good and just corporate citizen, they are contributing to the country.
Option (c), also reduces political risk in the country as investment exposure to the country is less.
Option (d) leads to make relations with the local suppliers thus reducing political risk as it will increase the power of negotiation of Magma in Mozambique.
Hence the correct option is (b).
