Diversification Is Possibly the Best Technique for Reducing the Problems

question 43

Essay

Diversification is possibly the best technique for reducing the problems associated with international transactions. Provide one example each of international financial diversification and international operational diversification and explain how the action reduces risk.

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Definitions:

Body

The physical structure of an organism, including its organs and tissues.

Osmolarity

The number of osmoles of solute per liter of solution. See osmole.

Osmoles

Osmoles measure the amount of solute that contributes to the osmotic pressure of a solution, reflecting the concentration of particles that can move freely across a semipermeable membrane.

Solution

A homogeneous mixture composed of two or more substances, where one substance (the solute) is dissolved in another (the solvent).