Dave Is a Research Analyst at Geo Corp

Multiple Choice

Dave is a research analyst at Geo Corp., a U.S.-based firm, specializing in organic farm produce. Since the management is considering entering a foreign market, Dave begins to study the risks associated with this move. After gathering sufficient data regarding the internal factors of the new market, he categorizes the risks based on the type. Which of the following is most likely to be considered a political risk?

A) Marketers of Geo standardizing products based on local market needs
B) Distribution costs being higher in the market than that in the United States
C) Laws prohibiting foreign ownership of local firms in the new market
D) Consumers preferring local goods to foreign products in the new market