All of the Following Are Potential Disadvantages to Initiating, Continuing

question 39

Multiple Choice

All of the following are potential disadvantages to initiating, continuing, or expanding business across national borders EXCEPT

• A) firms confront different social, cultural, and political forces when doing business internationally, which can make communication in the firm difficult.
• B) keeping informed about the number and nature of competitors is more difficult when doing business internationally.
• C) foreign operations can absorb excess capacity, reduce unit costs, and spread economic risks over a wider number of markets.
• D) dealing with two or more monetary systems can complicate international business operations.
• E) foreign operations could be seized by nationalistic forces.

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Definitions:

Gross Domestic Product

The total market value of all goods and services produced within a country in a specific time period, serving as a broad indicator of a country's economic performance.

Services Produced

The output of economic activities that provide intangible benefits or fulfill needs, such as education, healthcare, and entertainment.

Indigenous Peoples

Refers to the original inhabitants of a given region or country, who have distinct cultural, social, and historical identities, often maintaining practices and traditions that predate colonial influences.

World Council

A global organization or assembly aimed at addressing, discussing, and solving world issues.