All of the following are potential disadvantages to initiating, continuing, or expanding business across national borders EXCEPT
A) Firms confront different social, cultural, and political forces when doing business internationally, which can make communication in the firm difficult.
B) Keeping informed about the number and nature of competitors is more difficult when doing business internationally.
C) Foreign operations can absorb excess capacity, reduce unit costs, and spread economic risks over a wider number of markets.
D) Dealing with two or more monetary systems can complicate international business operations.
E) Foreign operations could be seized by nationalistic forces.
Answer: C) Foreign operations can absorb excess capacity, reduce unit costs, and spread economic risks over a wider number of markets.