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.

---

Definitions:

Return-On-Investment

A performance measure used to evaluate the efficiency or profitability of an investment, calculated by dividing the profit of an investment by its cost.

Trade-Off

A situation that involves losing one quality or aspect of something in return for gaining another quality or aspect.

Major Categories

Principal divisions or classifications in a system or grouping, under which more specific items or concepts can be filed.

Objections

In sales and negotiation, objections are the concerns, hesitations, or doubts expressed by a potential buyer or client.