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

QUESTION

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

A) International agencies have effectively standardized business practices worldwide.
B) Expensive legal research is often required before U.S. companies can set up facilities in other countries.
C) Investors have committed a significant amount of upfront capital for Gizmo to set up foreign operations.
D) The cultures of the foreign countries in which Gizmo wants to do business differ greatly from U.S. culture.
E) Gizmo’s marketing strategies will need to be tailored to overseas markets to be successful.

ANSWER

Answer: A
Explanation: A) If business practices are standardized worldwide, then Gizmo will not need to do extensive tailoring of its business plan or altering of its products and services to succeed in other countries. Choice B: If legal systems differ significantly between countries, this will presumably have ramifications in the way that U.S. companies do business in those countries. Choice C: Adequate funding of international startup ventures does not ensure that businesses operate the same way in other countries. Choices D and E weaken the CEO’s argument—significant differences in culture and marketing strategies would probably entail major differences in how business is done.