Asked by AIDAN ECCLESTON on Jul 06, 2024
Verified
Cerise Inc., an American consumer electronics company, wants to expand its business internationally. Kiara, a manager at Cerise Inc., believes that the company should thoroughly understand the level of political freedom of a country before starting operations there. However, Dylan, another manager at Cerise Inc., thinks that conducting an analysis of the level of political freedom in a country might lead to unnecessary expenses for the company. Which of the following statements supports Kiara's belief?
A) A thorough understanding of the level of freedom can help Cerise Inc. form positive relationships with local governments.
B) A thorough understanding of the level of freedom can help Cerise Inc. evade taxation in foreign markets.
C) A thorough understanding of the level of freedom can help Cerise Inc. suppress competitive pressures in politically unstable countries.
D) A thorough understanding of the level of freedom can help Cerise Inc. minimize its operations expenses.
Political Freedom
The degree to which individuals are able to participate in the political life of their society without repression.
Evade Taxation
The illegal practice of avoiding the payment of taxes owed by using deceitful or unlawful means.
Competitive Pressures
Forces or factors in the external environment that compel organizations to adapt, innovate, and continually improve to maintain or enhance their market position.
- Identify the impacts of both large-scale and small-scale political risks on global enterprises.
Verified Answer
KF
Karina FernandezJul 09, 2024
Final Answer :
A
Explanation :
Understanding the level of political freedom can aid in forming positive relationships with local governments, which is crucial for smooth operations and expansion in a new country.
Learning Objectives
- Identify the impacts of both large-scale and small-scale political risks on global enterprises.