Question

SJC Enterprises, a global firm, operates a facility in Angola. Managers want to reduce the firm's vulnerability to political risk in Angola. All the following actions would most likely accomplish this task except ________.

A) purchasing capital equipment outright
B) buying inputs from local suppliers
C) reducing net investment in the subsidiary
D) being a good corporate citizen

Answer 1

A)

Step-by-step explanation:

Based on the information provided within the question it can be said that in this scenario the action that would prevent this would be purchasing capital equipment outright. This is because in order to try to reduce the firm's vulnerability to political risk they need to abide by the rules and politics in Angola and cause as little problem as they can, and instead help the country. Which all of the answers help in this regard except for exceeding the set amount when purchasing equipment.