Many organizations use cross border transactions for varied reasons because of the emerging competitive scenario.Select one:TrueFalse

The statement "Many organizations use cross-border transactions for varied reasons because of the emerging competitive scenario" is True.

Explanation

Cross-border transactions are increasingly utilized by organizations due to several factors stemming from globalization and competitive market dynamics. These transactions allow companies to access new markets, gain a competitive edge, diversify their investment portfolios, and optimize their supply chains.

1. Access to New Markets: Organizations can expand their customer base beyond domestic borders, revealing new revenue opportunities.
2. Cost Efficiency: By sourcing goods and services from countries with lower production costs, firms can enhance their profitability.
3. Risk Management: Diversification through cross-border transactions helps distribute risk, reducing the impact of economic fluctuations in any single market.
4. Innovation and Technology: Companies can leverage overseas partnerships for technological advancements and innovative practices.

Thus, cross-border transactions are indeed a strategic choice for organizations in a competitive landscape.