All of the Following Are Potential Disadvantages to Initiating,continuing,or Expanding

question 75

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.

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Definitions:

Bond Price Changes

Variations in the market price of bonds, influenced by interest rate movements and other factors.

Interest Rate Changes

Modifications to the interest rates set by lenders or central banks, which can affect loan costs, savings rates, and monetary policy.

Industrialized Economy

An economy characterized by a significant level of industry activity, including manufacturing and services, leading to a higher standard of living and technological advancement.

Production Sector

Refers to the segment of the economy concerned with the manufacturing and production of goods.