What is the greatest risk for firms that have structurally sophisticated global networks?
A) environmental volatility
B) competition from domestic firms
C) shortages of experienced personnel
D) implementation of corporate policies

Question

Quizplus · Accepted Answer

Environmental volatility poses the greatest risk for firms with structurally sophisticated global networks. Such firms are heavily reliant on various resources, labor, and technology across different countries and regions, making them vulnerable to sudden changes in political, economic, and social conditions that can disrupt their operations, supply chains, and profitability. Factors such as currency fluctuations, political uncertainty, natural disasters, and market shifts can significantly impact the performance of global firms and limit their ability to respond effectively to changing conditions. Consequently, firms need to develop effective risk-management strategies to mitigate these risks and maintain competitiveness in the long term.

What Is the Greatest Risk for Firms That Have Structurally