​To Diversify Internationally for the Purpose of Reducing Risk, Which

question 30

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.

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Definitions:

Projective

Relating to techniques or tests used in psychology to assess personality and emotions based on an individual's responses to ambiguous stimuli.

Observational

Relating to the acquisition of knowledge or information through watching the behaviors of others or noting phenomena as they occur.

Rorschach Inkblot Test

An assessment where individuals' interpretations of inkblots are documented and examined through psychological analysis, complex computational formulas, or a combination of both.

Psychological Disorders

Psychological Disorders are mental disorders characterized by persistent disturbance or dysfunction in behavior, thoughts, or emotions that cause significant distress or impairment.