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

Question

Quizplus · Accepted Answer

Expanding a firm's operations to include a manufacturing facility in Russia will increase inherent risk. Russia has higher levels of political and economic volatility, complicated tax and regulatory systems, and corruption risks. These factors increase the inherent risk associated with expanding into a new market.

Expanding a Firm's Operations to Include a Manufacturing Facility in Russia