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:

Environmental Factor

Any external element that can influence the development or outcome of a process or the health of an organism.

Birth Defects

Abnormalities in physical or mental structure or function that are present at birth, affecting body development or function.

Embryonic Stage

The period from two to eight weeks following fertilization during which significant growth occurs in the major organs and body systems.

Fetal Stage

The stage that begins at about eight weeks after conception and continues until birth.