Tricore’s chief financial officer argues that some investment by Trico

QUESTION

Tricore’s chief financial officer argues that some investment by Tricore in Zimbabwe may help the company in doing long-term business there. Which of the following, if true, strengthens her argument?

A) Tricore has limited funds for international ventures.
B) Tricore does not have any executives with experience in international business.
C) Companies are most successful in foreign business when existing business conditions are optimal.
D) A company can foster its own foreign business success by improving local infrastructure.
E) Zimbabwe has significant problems with corruption in business.

ANSWER

Answer: D
Explanation: D) Investments in local infrastructure could help Tricore to sell its products there, where its success might be otherwise hampered by local limitations. Choices A and B weaken the case for Tricore undertaking any significant international business ventures at all. Choice C weakens the case that Tricore should undertake an international venture if it has to make significant long-term investments first. Choice E weakens the case that investments by Tricore in Zimbabwe would be spent to the company’s advantage.