By operating internationally, a company may take advantage of business-cycle differences among countries and thereby reduce its financial risks.

Question

Quizplus · Accepted Answer

By operating in different countries, a company can diversify its portfolio and mitigate risks. If one country is experiencing a downturn, the company can still rely on revenue from other countries that may be in a different phase of the business cycle. This reduces the company's exposure to financial risks.

By Operating Internationally, a Company May Take Advantage of Business-Cycle