Which of the following BEST explains how a firm reduces risk by operating internationally?
A)taking advantage of business-cycle differences among countries
B)buying competitive risk insurance unavailable domestically
C)preventing competitors from operating in the countries it has entered
D)operating in less competitive environments than those at home

Question

Quizplus · Accepted Answer

By taking advantage of business-cycle differences among countries, a firm can reduce its risk by diversifying its operations in different markets. This allows the firm to remain less vulnerable to economic downturns in any one market and hedge against fluctuations in demand.

Which of the Following BEST Explains How a Firm Reduces