Asked by Maurice Edwards on May 10, 2024
Verified
Derrick decides to shut down his steel business in Kenya and shift the production to his home country, the United States. The rising labour problems and political disruptions in the host country had led him to make this decision. This method of shifting of business to a native location is called ___.
A) joint venture
B) foreign subsidiary
C) outsourcing
D) franchising
E) reshoring
Foreign Subsidiary
A company that is based in one country but is owned or controlled by a parent company from another country.
Reshoring
What occurs when firms move jobs back home from foreign locations.
Outsourcing
The practice of hiring external vendors or companies to perform services or create goods that were traditionally done internally.
- Understand how political disruptions can threaten foreign investments and the importance of political risk analysis.
Verified Answer
MY
Malyun YahyeMay 17, 2024
Final Answer :
E
Explanation :
The method of shifting a business from a foreign location back to its native location is known as reshoring. In this case, Derrick is moving his steel business from Kenya back to the United States due to labor problems and political disruptions in Kenya.
Learning Objectives
- Understand how political disruptions can threaten foreign investments and the importance of political risk analysis.
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