Question

Risk is an important factor for companies engaged in international business. One way a collaborative arrangement helps minimize risk when operating abroad is by ________. Group of answer choices

Answer 1

One form of a collaborative agreement that helps to minimize risk when operating abroad is to freeing up resources so that a company can diversify into more countries.

The internationalization of a business has added risks that require effective risk management for the protection of the company's assets and long-term sustainability in the market.

Some potential risks of operating abroad are:

• Entry barriers
• Bureaucracy
• Legislative barriers
• Cultural barriers

Therefore, by freeing up resources so that a company can diversify in more countries, it increases the possibility of a company adapting to different markets and not just fixing all its resources in a single international market.

This can be a strategy for an organization to gain knowledge, experience and develop better strategies to operate in the international market.

Learn more here:

brainly.com/question/14312691