In the context of organizations that have a global presence, which of the following statements is true?
A) Companies feel they do not communicate their strategy clearly, finding it difficult to be flexible as they expand to other markets.
B) Companies find it difficult to adapt to globalization as it involves shifting from integrating global operations to trade and investment.
C) Sharing the cost of distant centers decreases the expense of local operations.
D) Emerging market opportunities expose companies to unfamiliar risks that may be difficult to analyze.

Question

Quizplus · Accepted Answer

Emerging markets often have different laws, regulations, and cultural norms that can pose risks to companies. These risks may be difficult to analyze and prepare for, making it challenging for organizations with a global presence to take advantage of emerging market opportunities. Option A is incorrect because companies with a global presence typically have well-defined strategies that are communicated clearly. Option B is incorrect because integrating global operations and engaging in trade and investment are not mutually exclusive. Option C is incorrect because sharing the cost of distant centers may not always lead to a decrease in the expense of local operations.

In the Context of Organizations That Have a Global Presence