Question

question 27
advantages of going global for u.s. banks include all but which one of the following?
o greater sources of funds
o diversification of earnings
o greater opportunities to exploit economies of scale
o low fixed costs involved in international expansion
o conducting business in less regulated environments
previous

Explanation:

When a U.S. bank goes global, it can access more funds (from international markets), diversify earnings (different regions have different economic cycles), exploit economies of scale (larger - scale operations), and operate in less - regulated environments (which may offer more flexibility). However, international expansion typically involves high fixed costs such as setting up new branches, complying with multiple regulatory frameworks, and establishing a global infrastructure.

Answer:

low fixed costs involved in international expansion