Presence in multiple international markets provides a measure of diversification, which lowers risk.

Question

Quizplus · Accepted Answer

By operating in multiple global markets, a company can spread out its sources of revenue and minimize its exposure to risk in any one market. This diversification strategy can help protect the company against economic fluctuations, political unrest, and other factors that could adversely impact its operations in a single country or region. As a result, having a presence in multiple international markets can be an effective way to lower risk for a business.

Presence in Multiple International Markets Provides a Measure of Diversification