What might be a disadvantage of a business making decisions abroad?

A potential disadvantage of a business making decisions abroad is that it can lead to slower response times in local markets. When a company's decision-making is centralized or conducted from a foreign headquarters, it may not be able to react quickly or effectively to local market changes, consumer preferences, or emerging competition. This delay can hinder the business’s ability to capitalize on opportunities or address challenges promptly, ultimately affecting its competitive edge and market performance.

In contrast, enhancing local market understanding typically comes as a benefit of localized decision-making, while the need for local partnerships could be reduced when decisions are made at a distance, potentially limiting responsiveness. Ensuring consistency in corporate culture may be positive for maintaining a unified brand image, but this can also come at the cost of ignoring local nuances that may require adaptation. Thus, the correct answer highlights a significant drawback of distance in decision-making for businesses operating in diverse markets.