An expansion of a firm's operations to include production in Russia and China will have the effect of
A)increasing inherent risk.
B)reducing inherence risk.
C)increasing control risk.
D)reducing control risk.

Question

Quizplus · Accepted Answer

Expanding operations to countries with different political and economic systems, such as Russia and China, increases inherent risk as there is a higher likelihood of regulatory, cultural, and economic challenges that may impact the firm's operations.

An Expansion of a Firm's Operations to Include Production in Russia