The geographic-diversified firm must ensure that the benefits of being international outweigh the added costs of the ________ necessary to support its nondomestic operations.

Question

Quizplus · Accepted Answer

Infrastructure refers to the physical and organizational structures needed to support operations, such as buildings, transport links, and communication systems. For a geographic-diversified firm with operations in multiple countries, the costs of establishing and maintaining these infrastructure elements can be high. Thus, the firm must assess whether the potential benefits of going international (such as increased market share, access to new customers, or lower costs) are worth the added costs of infrastructure investment.

The Geographic-Diversified Firm Must Ensure That the Benefits of Being