Which of the Following Items Is an Advantage of International

question 100

Multiple Choice

Which of the following items is an advantage of international expansion for an FI?

• A)An FI faces the political risk that a change in government may lead to the nationalization of fixed assets.
• B)A global FI must master the rules and regulations of each market in which it operates.
• C)The fixed costs of establishing overseas organizations may be very high in certain markets.
• D)International expansions allow an FI to maintain contact with and provide service to the needs of domestic multinational corporations.
• E)The absolute level of risk exposure in certain markets can be very high.

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Definitions:

Collectivism

A cultural value that emphasizes the importance of the group over individual achievements.

Demonstrated Conformity

A behavior change designed to match the actions of others, typically influenced by the perceived need for acceptance.

Group Unanimity

A situation where members of a group completely agree on a decision or opinion, often influencing the behavior and thoughts of its individuals.

Task Difficulty

Refers to the level of challenge presented by a task, with the degree of difficulty affecting how an individual or group performs.