Final answer:
The most effective strategy for engaging the power of several investors and banks to minimize political vulnerability and risk is Expanding the investment base.
Step-by-step explanation:
The strategy that has the advantage of engaging the power of several investors and banks in the host country to minimize political vulnerability and risk, particularly when government takeover or harassment is threatened, is Expanding the investment base (C). This method involves increasing the number of investors and financial institutions involved in a project or company. When a diverse group of stakeholders from the host country, including influential banks, have vested interests in an investment, it creates a buffer and a form of leverage against political interference or expropriation. These stakeholders can exert pressure on the government to act in the best interest of the economy, which often includes protecting foreign investments. Joint ventures (A) and Licensing (B) may also help in sharing risk but do not directly involve banks as much as expanding the investment base does. Sole-proprietorship (D) and Political bargaining (E) are other strategies but are not primarily concerned with involving investors and banks to safeguard against political risks.