A firm wants to build a subsidiary in the Middle East. However, it is apprehensive because of protests in some Middle Eastern countries and the violence in Syria. It does not know if it should take the risk of expanding. Which type of barrier does this situation represent?

Question

Aliana Fritz

Business

24 July, 05:27

A firm wants to build a subsidiary in the Middle East. However, it is apprehensive because of protests in some Middle Eastern countries and the violence in Syria. It does not know if it should take the risk of expanding. Which type of barrier does this situation represent?

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Answers (1)

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Bruce Burke · Answer 1

Answer: Political barrier.

Explanation:

In reference to the question, the political barrier is the limitation that the business faces because of the political instability in the nations they seek to expand to.

Foreign investors consider political stability in countries they seek to invest in: when a country is politically unstable, it becomes difficult to run a business there because of lack of: safety, security and other key factors.