When economic conditions of two countries are ____, an MNC would ____ its risk by operating in both countries instead of concentrating just in one.
A) highly correlated; reduce
B) not highly correlated; not reduce
C) not highly correlated; reduce
D) None of these are correct.

Question

Quizplus · Accepted Answer

When economic conditions of two countries are not highly correlated, it means that the economic conditions of one country do not necessarily influence the economic conditions of the other country. As a result, by operating in both countries, an MNC would reduce its risk as it would be less exposed to any adverse economic conditions that may arise in a single country. Therefore, option C is the correct answer.

When Economic Conditions of Two Countries Are ____, an MNC