The varying business cycles experienced by a multinational firm in its various operating jurisdictions are an example of advantage.

Diversification advantage

Explanation:

Diversification is the startegy used by businesses to reduce risk by allocating resources in different business units and locations.

When there is a downturn in one business unit, the performance in another unit will help balance out the loss.

Apart from reducing risk diversification also focuses on preserving capital and generating returns from various sources.

Investments are not put in only one endeavour but several..

Multinational firms stand to benefit greatly from diversification advantage

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