Which of the Following Is a Disadvantage of International Expansion

question 145

Multiple Choice

Which of the following is a disadvantage of international expansion?

• A)An FI can lower its net regulatory burden and therefore increase its potential net profitability by finding countries that have reduced activity restrictions and reserve requirements.
• B)An FI can generate additional returns from new product innovations if it can sell such services internationally rather than just domestically.
• C)Monitoring and information collection cost often are higher in international markets.
• D)International expansion allows an FI to search for cheaper and more available sources of funds.
• E)International activities enhance the opportunities to diversify the risk of earnings flows.

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Definitions:

Margin Error

The highest degree to which the outcomes from a sample are anticipated to vary from the actual value of the population.

Sample Size

Refers to the number of observations or data points that are collected and used for statistical analysis.

P-values

The odds of observing test results as extreme or more extreme than the actual outcomes, under the presumption that the null hypothesis is accurate.

One-sided

Refers to a type of hypothesis test or confidence interval where the alternative hypothesis targets a specific direction of effect.