Companies Operating in Emerging-Market Countries Often Hold Levels of Raw

Companies operating in emerging-market countries often hold levels of raw materials inventories that are far in excess of what one would expect to see in a comparable firm in a developed market. Reasons why this is the case include all except which of the following statements?

A) Because delivery lead times may be substantially longer, particularly for imported items, and less predictable.
B) Inflation in the country may be high and, even if it does not qualify as hyperinflation, companies prefer to keep their wealth in nonmonetary assets.
C) Many companies use the economic order quantity model to determine the level of inventory instead of the newer more sophisticated models and this biases them toward excessive amounts of inventory.
D) People in many countries are much more risk averse than persons in other countries and this leads to greater precautionary balances or safety stocks to be carried, thus increasing the amount of inventory being carried.
E) None of the statements above; all are reasons for carrying larger than usual amounts of raw materials inventory.