A U$.$S$.$ mining operation opens a mine in Canada. The owner knows that it is easier and less expensive to acquire mining equipment in the$$ Klondike, an area of$$ Canada, than elsewhere. The owner of the mine goes to the Klondike and meets locals who offer to partner with him. Why is this miner seeking international$$ business, and what type of risk is he$$ taking?

Question content area bottom

Part $1$

A$.$

To gain access to less costly factors of$$ production; commercial risk

B$.$

To develop economics of scale in$$ marketing; country risk

C$.$

To invest in a potentially rewarding relationship with a foreign$$ partner; currency risk

D$.$

To better serve customers that have$$ relocated; currency risk

E$.$

To confront international competitors more$$ directly; cultural risk