Overseas Expansion (Scenario) Whittaker Semiconductors Has Recently Decided to Expand Its Operations Overseas

question 44

Multiple Choice

Overseas Expansion (Scenario)
Whittaker Semiconductors has recently decided to expand its operations overseas. Amanda Quan, Vice President of International Business, assigned a team of investigators to analyze the risks faced by the company in making this move. Of particular interest were the risks that might affect the success of a new production plant to be located in one of three potential countries.
-Philip Baxter reported on the risks associated with establishing the plant in Country A. The most significant risk, in his view, was posed by the government's complex bureaucratic structure. Philip reported the likelihood of significant administrative delays in opening the plant. The risk identified by Philip is an example of which of the following?

• A) country risk
• B) commercial risk
• C) currency risk
• D) cross-cultural risk

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Definitions:

Education

The process of facilitating learning, or the acquisition of knowledge, skills, values, beliefs, and habits through various methods.

Nutrition

The process of providing or obtaining the food necessary for health and growth.

International Monetary Fund

A global institution that provides financial assistance and advice to member countries to promote economic stability and growth.

Economic Development

The way in which a country advances its people's economic, political, and social conditions.