Which of the following, if true, most weakens the CEO’s argument? A)

QUESTION

Which of the following, if true, most weakens the CEO’s argument?

A) Exporting goods from a foreign country will incur significant costs.
B) Most of the appliance parts Gizmo sells in the United States will also readily sell in foreign markets.
C) International business ventures carry inherent risks that are not present in domestic business.
D) Appliance parts will be a growing market in developing countries as more and more people can afford appliances.
E) Many poor countries still have mostly agriculturally based economies.

ANSWER

Answer: C
Explanation: C) Going into business internationally does not just involve transplanting a U.S. operation to another country and doing business the same way as one does domestically. Expanding a business internationally introduces a number of risk factors specific to operating in other countries, including various economic and cultural factors that are not present when running the business only domestically. So one cannot assume that a successful domestic business will also be successful if run the same way internationally. Choice A is irrelevant because Gizmo is not apparently planning to export goods from foreign countries. Choices B and D strengthen the CEO’s position by saying that Gizmo won’t need to find all new products to get started with overseas sales and by pointing out the likelihood of a growing foreign market for appliance parts. Choice E is not relevant to Gizmo’s expansion plans into large economies like Brazil and India.