Question

A firm wants to build a subsidiary in the Middle East. However, it is apprehensive because of protests in some Middle Eastern countries and the violence in Syria. It does not know if it should take the risk of expanding. ​Which type of barrier does this situation represent?
A) ​economic
B) ​competitive
C) ​legal and regulatory
D) ​political
E) ​sociocultural

Answer 1

Answer:

D. Political

Explanation:

Political barriers are those barriers resulting from political changes in a country. They are those obstacles or restrictions that prevents a firm or a business from establishing subsidiaries or start ups in locations having it. Political barriers may come in many form. It may be as a result of changes in government, instability in the power of Government, protest and wars too like in the example cited in the question and so on. These activities serves as a barrier for business and organization looking to establish operations in that country.