An MNC will likely benefit most from diversifying if:
A) the correlations between country economies are high.
B) the correlations between country economies are low.
C) the variability of all country economy levels is high.
D) the correlations between country economies are low AND the variability of all country economy levels is high.

Question

Quizplus · Accepted Answer

Diversification benefits are maximized when the correlations between country economies are low, as this reduces the risk of simultaneous downturns across all markets.

An MNC Will Likely Benefit Most from Diversifying If