Gizmo’s chief operating officer urges caution in the expansion of the

QUESTION

Gizmo’s chief operating officer urges caution in the expansion of the company into other countries, stating that conditions in some countries make doing business overseas inherently riskier than in the United States.

Which of the following, if true, most weakens his argument?
A) Marketing strategies that are successful in the United States are not always successful overseas.
B) Cultures may vary widely across countries.
C) Gizmo’s products are those that are used widely around the world.
D) Some other countries have existing companies that would compete directly with Gizmo.
E) Political and economic instability that may not be present in the United States may arise in other countries.

ANSWER

Answer: C
Explanation: C) If the kinds of products that Gizmo sells are used widely around the world, it’s likely that Gizmo’s business will do well in foreign markets. Choice A: Having to change marketing strategies introduces risk into expanding into foreign markets—other marketing strategies may be unsuccessful. Choice B: Cultural differences introduce risk in that the company may not successfully adjust to doing business in other countries. Choice D: Entering an environment with additional competitive factors introduces risk. Choice E: The possibility of political and economic instabilities in other countries introduces risk to international expansion.