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

Respuesta :

Answer:

A) purchasing capital equipment outright

Explanation:

The goal is to reduce the risk of operating in Angola due to political instability, so the last thing you want to do is increase investment in Angola by purchasing capital equipment for that subsidiary.

The other 3 options specially C (reducing net investment in the subsidiary) are all ways of reducing risks. Option B is also a good move since you reduce the need to import inputs, so you do not need to use US dollars to pay for them. Option D is also valid because it is always better to be a good citizen, even for corporations.