All of the following are potential advantages to initiating, continuing, and/or expanding international operations EXCEPT
A) Firms can gain new customers for their products.
B) Foreign operations can absorb excess capacity, reduce unit costs, and spread economic risks over a wider number of markets.
C) Foreign operations can allow firms to establish low-cost production facilities in locations close to raw materials and/or cheap labor.
D) Foreign operations could be seized by nationalistic factions.
E) Foreign operations may result in reduced tariffs, lower taxes, and favorable political treatment.
Answer: D) Foreign operations could be seized by nationalistic factions.