Pont Company is a multinational brand based in the United States that makes jackets. Their market share is a healthy 20%. Yet, from a few years back newer companies have been increasing their market share at their expense. Pont Company is studying whether it should enter the BRIC markets because of their vast populations, which would mean increased sales. They also are looking to procure cheaper raw materials and low-wage production. How would you explain the objective of reducing the risk of only being in one region?

A. The marketing team will increase their online platform in the U.S. if they have operations in a BRIC country, because of the time zone changes. The new marketing team would double their efforts.

B. If there is a cyclical economic downturn in Brazil , sales most likely will decrease. Your company can focus in Russia , which may not suffer from the economic slump.

C. They may run into structural bottlenecks if they stayed in the U.S. , whereas if they participated in foreign direct investment in a BRIC country, they could save time by making decisions more horizontally.

D. The socio-cultural similarities between a BRIC country and the U.S. may decrease as they use technology to communicate, thus having operations in different countries will increase their output.