All of the following are potential advantages to initiating, continuing, and/or expanding international operations EXCEPT
A) firms can gain new customers for their products.
B) foreign operations can absorb excess capacity, reduce unit costs, and spread economic risks over a wider number of markets.
C) foreign operations can allow firms to establish low-cost production facilities in locations close to raw materials and/or cheap labor.
D) foreign operations could be seized by nationalistic factions.
E) foreign operations may result in reduced tariffs, lower taxes, and favorable political treatment.

Question

Quizplus · Accepted Answer

Foreign operations being seized by nationalistic factions is a potential disadvantage, not an advantage, of international operations.

All of the Following Are Potential Advantages to Initiating, Continuing