Question

A research associate is requested by his boss to write a report identifying potential new arenas in which the business might launch overseas operations. Which of the following categories is the associate least likely to include as a potential arena in his report?

1) Agriculture
2) Technology
3) Education
4) Healthcare

Answer 1

The research associate is least likely to include agriculture in a report on potential new overseas operation arenas due to its dependency on local conditions and not being as scalable. Key problems for foreign trade include trade restrictions, political instability, and cultural differences. The correct option is 1) Agriculture

Step-by-step explanation:

The research associate tasked with identifying potential new arenas for overseas business operations is least likely to include agriculture in his report. This is because agriculture is typically more subject to local climate and soil conditions, and local regulations, and may not be as scalable or transferable as sectors like technology, education, or healthcare. When considering contemporary problems and issues creating barriers to foreign trade and political relations, one can highlight a few key areas:

• Trade restrictions and tariffs: These can inhibit the flow of goods and services and make it costly to enter new markets.
• Political instability: Issues such as regime change, conflict, or political turmoil can deter businesses from entering a market due to increased risk.
• Cultural differences: Variations in language, customs, and business practices can complicate the establishment and success of overseas operations.

Insights into these areas could provide a framework for the report and help shape the recommendation of sectors in which to potentially operate abroad. The correct option is 1) Agriculture