Panel A: Partial Disengagement Strategies
Advantages Drawbacks
Discontinue sale of international premium brands
  • Highly Visible
  • Loss of high-margin part of the business
Discontinue technology transfer and staff training
  • Significant economic impact in some industries
  • Impact depends on technological dependencies
Discontinue exports of intermediate goods to the operation
  • Highly visible
  • Significant economic impact in some industries
  • Impact depends on resource dependencies
Freeze operations, i.e. continue status quo but no new investments
  • Meets basic stakeholder expectations
  • Unlikely to satisfy highly engaged stakeholders
  • High exposure to political risks
Panel B: Full Disengagement Strategies
Advantages Drawbacks
Liquidate operations
  • Strong signal to political stakeholders
  • Significant economic impact
  • Local employees lose jobs and income
  • Expropriation by host authorities likely
  • Complete financial write-off
Sell operations to highest bidder
  • Strong signal to political stakeholders
  • Minimizing financial losses
  • Feasibility depends on resource dependencies
  • Few buyers available, thus sale price likely is substantially below book value.
  • Implementation will take time
  • Assets likely to fall in the hands of allies of the political regime
Sell operations to buyer meeting ethical concerns
  • May include specific conditions such as protection of employees or buy backs.
  • Protecting property rights
  • Complex negotiations
  • Contracts may not be enforceable