Generally, the Costs and Risks Associated with Doing Business in a Foreign

question 33

Multiple Choice

Generally, the costs and risks associated with doing business in a foreign country are typically lower in

• A) less developed countries.
• B) economically advanced countries.
• C) totalitarian states.
• D) countries with high inflation and falling living standards.
• E) countries that lack intellectual property rights.

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Definitions:

Alternatives

Other options or choices available to businesses or individuals when making decisions, reflecting the diversity of possible approaches or solutions.

Substitute

A person or thing acting in place of another, often used in the context of replacing an original item or role with an alternative.

Threat

A possible danger that might exploit a vulnerability to breach security and cause possible harm to a system or organization.

Supplier Power

The influence that suppliers have over the potential profits of the businesses they sell to, high supplier power can influence the terms and conditions of supplying goods and can affect price settings.