All of the following are potential advantages to initiating, continuing, and/or expanding international operations EXCEPT
A) firms can gain new customers for their products.
B) foreign operations can absorb excess capacity, reduce unit costs, and spread economic risks over a wider number of markets.
C) foreign operations can allow firms to establish low-cost production facilities in locations close to raw materials and/or cheap labor.
D) foreign operations could be seized by nationalistic factions.
E) foreign operations may result in reduced tariffs, lower taxes, and favorable political treatment.
D
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With which of the following organizational structures does an employee at a foreign subsidiary report to both a local manager and a corporate manager?
A) global matrix structure B) functional division structure C) home replication structure D) multidomestic structure
An options contract gives the owner the ________ but not the ________ to buy or sell an asset at a fixed price at some future date
A) obligation, right B) right, option C) right, obligation D) option, right