All of the Following Are Potential Advantages to Initiating, Continuing

question 10

Multiple Choice

All of the following are potential advantages to initiating, continuing, and/or expanding international operations EXCEPT

• A) firms can gain new customers for their products.
• B) foreign operations can absorb excess capacity, reduce unit costs, and spread economic risks over a wider number of markets.
• C) foreign operations can allow firms to establish low-cost production facilities in locations close to raw materials and/or cheap labor.
• D) foreign operations could be seized by nationalistic factions.
• E) foreign operations may result in reduced tariffs, lower taxes, and favorable political treatment.

---

Definitions:

Arousal Theory

A theory in psychology that suggests people are motivated to maintain an optimal level of arousal, not too high or too low, for their personal best performance.

Excitement

A feeling of great enthusiasm and eagerness, often accompanied by physiological signs such as increased heart rate and heightened senses.

Boredom

A state of feeling disinterested or unengaged with one's current activity or surroundings.

Physiological Needs

The basic physical requirements for human survival, such as air, water, food, shelter, and sleep, as identified in Maslow's hierarchy of needs.