Are You a Risk-Taker?
Mr. Allen is the CEO of a large manufacturing firm, which has done very well over the last ten years. Lately, in considering expansion plans, it was brought to his attention that an attractive opportunity was available in another country for the location of the new plant. Labor costs would be much lower, and access to raw materials was also easier there, and he could count on a much higher return on investment.
On the other hand, this particular country has a history of political instability. In fact, powerful factions in this country were actively working toward political revolution and a commitment to nationalizing all industry inside it's borders, effectively taking over all foreign investments.
Should he locate the new plant in this country? How will Mr. Allen decide?
How about you? What would you do?
The answer you'd give reveals a lot about your personal attitudes toward taking risk.