When disequilibria in international markets occur, management can take advantage by:
A) doing nothing if they are already diversified and able to realize beneficial portfolio effects.
B) recognizing disequilibria faster than purely domestic competitors.
C) shifting operational of financing activities to take advantage of the disequilibria.
D) all of the above

Question

Quizplus · Accepted Answer

All of the options provided are valid ways in which management can take advantage of disequilibria in international markets. Option A suggests that if a company is already diversified, they may have exposure to alternative markets that are not affected by the disequilibria, realizing beneficial portfolio effects. Option B proposes that companies with international exposure may be more aware of the changing market conditions and can adapt faster than domestic competitors. Option C states that shifting operational or financing activities can exploit new opportunities arising from the disequilibria. Therefore, all of the options are valid and can be utilized by management to gain an advantage in international markets during times of disequilibrium.

When Disequilibria in International Markets Occur, Management Can Take Advantage