To Diversify Internationally for the Purpose of Reducing Risk, Which

question 46

Multiple Choice

To diversify internationally for the purpose of reducing risk, which strategy is appropriate?

• A) Establish subsidiaries in markets whose business cycles are the same as those where existing subsidiaries are based.
• B) Establish a subsidiary in a market that has relatively low cost of labor or land.
• C) Establish a subsidiary in a market where the local currency is weak but is expected to appreciate over time.
• D) Establish subsidiaries in markets whose business cycles differ from those where existing subsidiaries are based.