Which of the Following Environmental Factors Would Most Likely Increase

question 82

Multiple Choice

Which of the following environmental factors would most likely increase the risk for a firm that has established a fully owned subsidiary in a country?

• A)expropriation threats
• B)unreliable distributors
• C)infrastructure weaknesses
• D)quality control issues

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Definitions:

Operating Facilities

Operating facilities are physical locations where business and industrial processes or activities are conducted.

Inventory

The quantity of goods or materials in stock, either raw materials, work-in-progress, or finished goods, held by a business.

Competitive Strategy

The plan and actions taken by a company to attract customers and defend against competitors.

Product Cost

The total expense incurred in manufacturing or acquiring a product, including materials, labor, and overhead.