Diversification is one way for a firm to:
A)Countertrade
B)Manage economic exposure
C)Invest internationally
D)Combine interest and exchange rates
E)Finance import-export trade

Question

Quizplus · Accepted Answer

Diversification refers to the strategy of spreading out investments and risks across different industries or markets. By doing so, a firm can manage its economic exposure to potential losses from fluctuations in a particular market or industry. Countertrade, investing internationally, combining interest and exchange rates, and financing import-export trade are all related to different aspects of international business, but they are not directly related to diversification.

Diversification Is One Way for a Firm To