Asked by Logan perry on Jul 17, 2024

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Which of the following is NOT likely to be a reason that companies move into international operations?

A) to take advantage of lower production costs in regions where labour costs are relatively low
B) to develop new markets for the firm's products
C) because important raw materials are located abroad
D) to diversify the risk of global terrorist attacks

International Operations

Business activities that a company conducts outside its home country, including sales, manufacturing, and production.

Production Costs

The total cost incurred by a business to manufacture a product or to provide a service. This includes materials, labor, and overhead costs.

  • Understand the decision-making process involved in entering international operations and the risks associated with it.
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LS
Lekshmi SudhaJul 23, 2024
Final Answer :
D
Explanation :
Companies may move into international operations to take advantage of lower production costs, develop new markets, or access important raw materials. However, diversifying the risk of global terrorist attacks is not a common reason for companies to expand internationally. While international operations may provide some level of diversification, the primary reasons for expanding abroad are typically related to market opportunities and cost savings.