Korman Industries is a foreign multinational that recently established operations in the European Union.What is the most likely advantage for Korman as a result?
A)Governance processes are streamlined because local governments have been eliminated.
B)Market size is larger because of the elimination of internal tariff barriers.
C)Differential external tariff barriers exist for product shipments.
D)The EU uses English as its official language.

Question

Quizplus · Accepted Answer

The elimination of internal tariff barriers within the EU creates a larger market size for Korman Industries, which is a significant advantage. Options A and D are incorrect as local governments have not been eliminated and the EU's official language is not necessarily an advantage for Korman. Option C is also incorrect as differential external tariff barriers could create market barriers and additional costs for Korman Industries.

Korman Industries Is a Foreign Multinational That Recently Established Operations