One of the potential problems for an MNE that practices too much polycentrism is ________.
A) demanding that local communication methods be replaced with modern technology
B) underestimating the complexity of introducing new management practices
C) losing innovative capabilities to less-risky host-country practices
D) relying too much on home-country directions and policies
Question 2
Executives at Octagon Telecom, a global telecommunications firm, are considering investing in a telephone company located in Rwanda. However, many stockholders have expressed concerns about the political risk involved in such an investment.
Which of the following would most likely provide political risk insurance to Octagon?
A) International Development Association
B) African Development Bank
C) International Monetary Fund
D) Multilateral Investment Guarantee Agency
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