Which of the following is an advantage to an FI of expanding globally?
A)Exposure to nationalization or expropriation.
B)Economies of scale.
C)High fixed costs.
D)Costs of complying with different regulatory requirements.

Question

Quizplus · Accepted Answer

Expanding globally allows an FI to achieve economies of scale, which can lead to cost savings and increased efficiency. This can be especially beneficial in industries with high fixed costs. However, expanding globally also comes with challenges such as complying with different regulatory requirements, as well as exposure to nationalization or expropriation in some countries.

Which of the Following Is an Advantage to an FI