what requires that a firm actively involve nationals inthe management of the subsidiary?
Expert Answer
The politicalfactors include different laws, government agencies etc.that plays important role in affecting the organization bothpositively and negatively. They may pose restrictions on fewproduct for particular target audience.There are different means ofadapting to the political risk. They are equity sharing,participative management, localisation of operation and developmentassistance.
Participative management is the process where the firm make thenationals to also participate in managing the subsidiary.