Which of the following is NOT true about the harvesting or divestment of foreign operations?
A)One of the motives is to use resources where the performance prospects are better.
B)Companies can harvest or divest by selling existing facilities.
C)Closing a facility can be difficult because of governmental performance contracts.
D)Companies have tended to divest too soon, rather than working to improve performance.

Question

Quizplus · Accepted Answer

The statement that companies have tended to divest too soon, rather than working to improve performance, is not necessarily true as a general statement about the motives or outcomes of divesting foreign operations. Decisions to divest or harvest operations are complex and can be driven by a variety of strategic considerations, including but not limited to performance issues. There is no overarching trend that companies divest too soon; rather, such decisions are specific to each company's situation and strategic goals.

Which of the Following Is NOT True About the Harvesting