Diversification Is Possibly the Best Technique for Reducing the Problems

question 43

Essay

Diversification is possibly the best technique for reducing the problems associated with international transactions. Provide one example each of international financial diversification and international operational diversification and explain how the action reduces risk.

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Definitions:

Social Responsibility

Involves businesses making decisions and taking actions that benefit society as well as themselves.

Philanthropic Goodwill

The positive reputation and supportive engagement generated by a company or individual's charitable activities and contributions to society.

Economic Responsibility

An entity's duty to make decisions that benefit the economic well-being of society and stakeholders.

Virtue Ethics

Virtue ethics is an approach to ethical thinking that emphasizes the importance of developing good habits of character, stressing the role of virtues like justice, temperance, and courage in ethical behavior.