Adaptation And Dependency: International Business
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In lieu of suspending operations, or withdrawing from the country, a MNC will usually take one of two routes to manage political risk: adaptation or dependency. What is adaptation? What is dependency? What are the four characteristics of adaption and dependency?
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Solution Summary
This detailed solution discusses paths multinational corporations (MNC) take take in lieu of suspending operations or withdrawing from a country. Adaptation and dependency are explained, and their characteristics are outlined. Includes APA formatted references.
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A multinational company may decide to manage political risk through either adaptation or dependency. Adaptation means the company makes changes to its operations to accommodate to the country's political risks. If a company determines the risk is relatively low or that a high-risk environment is worth the potential returns they may choose to maintain operations in the host country and adapt to the political ...
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