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Which of the following environmental factors would cause the most concern regarding a firm's investment in...

Which of the following environmental factors would cause the most concern regarding a firm's investment in its establishment of a fully owned subsidiary in a country?

A. expropriation threats
B. unreliable distributors
C. infrastructure weaknesses
D. quality control issues
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Answer #1

A expropriation threats.

Expropriation threat would mean that the investor will lose his investment in that country due to governement legislations and no compensation will be paid to the investors.

This threat can be most concerning for an investor planning investing in a fully owned subsidiary in a country.

Though unreliable distributors, infrastructure weakness or quality control issues are concerns, they are not as important a concern as expropriation threat.

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