Final answer:
The most direct example of political risk in Spain for a U.S.-based MNC's subsidiary is the potential imposition of special taxes by Spain's government. The MNC must monitor policy changes and may mitigate risk through various strategies such as hedging or investment diversification. Additionally, members of an economic union usually sacrifice some political powers like trade policies and tariffs.
Step-by-step explanation:
The most direct example of political risk in Spain for a U.S.-based Multinational Corporation (MNC) with a subsidiary in Spain would be 'c. Spain's government may impose special taxes on the subsidiary'. This instance represents a direct governmental action that could affect the subsidiary's financial performance and strategic decisions.
To manage such risks, the U.S.-based MNC should closely monitor Spain's economic policies, political climate, and legal changes that might impact its operations. They may also consider strategies like hedging against tax increases or diversifying investments to mitigate potential impacts from the political risk.Examples of political power sacrifice in an economic union:Members of an economic union often have to give up some controls over trade policies, tariff regulations, andoftentimes must adhere to collective fiscal or monetary policies set by the union.