Increased international competition can be seen as a motivator to emphasize:

Question

Quizplus · Accepted Answer

Increased international competition puts pressure on firms to improve performance and profitability. In order to do this, firms may choose to emphasize return over risk in their investment decisions, potentially taking on more risk to generate higher returns. This could involve investing in projects with higher expected returns, or pursuing aggressive growth strategies. However, asset diversification is important to manage risk, so it may not be the best choice in this scenario. Focusing solely on the risk side of the risk-return relationship may lead to overly conservative investment decisions, which could limit potential returns. Overall, emphasizing the return side of the risk-return relationship is the best choice in response to increased international competition.

Increased International Competition Can Be Seen as a Motivator to Emphasize