A multinational firm that has poor sales in one region of the world but good sales in another, which allows it to remain profitable, is an example of:
A) diversification.
B) sustaining product quality.
C) increasing sales to reach production capacity.
D) increasing risk.

Question

Quizplus · Accepted Answer

Diversification allows a company to spread its risks and opportunities across different markets, so poor performance in one area can be offset by good performance in another.

A Multinational Firm That Has Poor Sales in One Region