All of the following are potential advantages to initiating, continuing, and/or expanding international operations EXCEPT
A) Firms can gain new customers for their products.
B) Foreign operations can absorb excess capacity, reduce unit costs, and spread economic risks over a wider number of markets.
C) Foreign operations can allow firms to establish low-cost production facilities in locations close to raw materials and/or cheap labor.
D) Foreign operations could be seized by nationalistic factions.
E) Foreign operations may result in reduced tariffs, lower taxes, and favorable political treatment.

Question

Quizplus · Accepted Answer

The potential disadvantage of international operations is that they could be seized by nationalistic factions or face political instability in the host country, leading to loss of investment and assets.

All of the Following Are Potential Advantages to Initiating, Continuing