“…This strategy, however, is associated with several difficult challenges because of the heightened international exposure, competition and additional environmental risks present in foreign host countries (Elango, 2009;Lu, Liu, Wright & Filatotchev, 2014;Jimenes & Delgado-Garcia, 2012). Environmental risks in host countries, such as political and industry risk, represent uncertainties and potential threats for multinational enterprises (MNEs) (Cuypers & Martin, 2010;Henisz, 2000Henisz, , 2002.…”