Expanding a firm's operations to include a manufacturing facility overseas will
A)reduce inherent risk.
B)reduce control risk.
C)increase inherent risk.
D)increase control risk.

Question

Quizplus · Accepted Answer

Expanding operations to include a manufacturing facility overseas will increase inherent risk. This is because operating in a foreign country brings about a new set of cultural, political, economic, and legal factors that must be considered. These factors increase the chances of unforeseen risks that may arise during the implementation or management of the facility.

Expanding a Firm's Operations to Include a Manufacturing Facility Overseas