Matata, a Japanese Firm That Manufactures Automobile Parts, Was Running

Multiple Choice

Matata, a Japanese firm that manufactures automobile parts, was running at a loss in its offshore outlet in Mexico due to the governmental and civil disruptions in the country. Thus, it withdrew its business outlets from Mexico. At this opportunity, another Japanese firm, Lui Corporation, entered into business in Mexico. With this decision, Lui Corporation has made itself liable to _____.

A) a licensing agreement
B) a regional economic alliance
C) political risk
D) insourcing
E) joint venture