Which of the following items is an advantage of international expansion for an FI?
A)An FI faces the political risk that a change in government may lead to the nationalization of fixed assets.
B)A global FI must master the rules and regulations of each market in which it operates.
C)The fixed costs of establishing overseas organizations may be very high in certain markets.
D)International expansions allow an FI to maintain contact with and provide service to the needs of domestic multinational corporations.
E)The absolute level of risk exposure in certain markets can be very high.

Question

Quizplus · Accepted Answer

International expansion allows an FI to maintain contact with and provide service to the needs of domestic multinational corporations. This provides an advantage as it helps the FI to retain its existing customers and also attract new customers from a wider geographic area. Options A, B, C, and E are all disadvantages and risks associated with international expansion.

Which of the Following Items Is an Advantage of International