66 ) All of the following are potential advantages to initiating , continuing and / or expanding international operations EXCEPT A ) firms can gain new customers for their products B ) foreign operations can absorb excess capacity , reduce unit costs , and spread economic risks over a wider number of markets ( ) foreign operations can allow firms to establish low - cost production facilities in locations close to raw materials and / or cheap labor D ) foreign operations could be seized by nationalistic factions E ) foreign operations may result in reduced tariffs , lower taxes , and favorable political treatment