Which of the following is a risk that firms must consider prior to expanding abroad?
A) The domestic consumers may prefer low-priced products.
B) The market in the foreign country may be too similar to the domestic market.
C) Consumers in the foreign country may be very particular about quality.
D) The foreign country may have very low pollution control standards.
E) Management may not understand the foreign country's business culture.

Question

Quizplus · Accepted Answer

Management not understanding the foreign country's business culture can lead to miscommunication, misunderstandings, and failed business ventures. It is important for firms to conduct thorough research and have a clear understanding of the foreign country's culture, customs, and business practices to avoid any potential risks. A, B, C, and D are all factors that can affect a firm's success in a foreign market but can be overcome with proper planning and strategy.

Which of the Following Is a Risk That Firms Must