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While expanding the investment base of a company, which of the following can be used as a powerful ally in dealing with threats of government takeovers or harassment?

A) Political Activism
B) Vertical Integration
C) Diversification
D) Strategic Alliances with Local Partners

1 Answer

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Final answer:

Strategic alliances with local partners are beneficial in dealing with government takeovers or harassment when expanding a company's investment base. This is because they can help the business navigate political challenges and demonstrate commitment to the local economy. The correct option is d.

Step-by-step explanation:

When expanding the investment base of a company, strategic alliances with local partners can be a powerful ally in dealing with threats of government takeovers or harassment. These alliances provide a local face to the business and can help navigate the political and regulatory landscapes more effectively.

Building partnerships with local firms can also serve to demonstrate a commitment to the local economy, which may alleviate some tensions between the company and governmental entities.

This strategy can be considered part of a broader set of management strategies, including vertical integration where a company controls different stages of production or distribution and horizontal integration, where a company expands by acquiring competitors.

Competing corporations may join together in associations for various reasons: there is strength in numbers, they may face common issues affecting their industry, and collectively, they can influence governmental policies to their benefit. The correct option is d.

User Stephan Branczyk
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