The Coca-Cola company has operations in more than 140 countries and generates more that 55 percent of its profits from its overseas operations. Coca-Cola’s annual profits are, therefore, more stable than those of a firm that focuses upon the U. S. market alone. Coca-Cola is engaging in .

a. a joint venture
b. an exchange rate movements
c. diversification
d. a merger
e. importing

C. diversification.

Explanation:

Diversification is a risk strategy, employ by businesses to strengthened its revenue base by entering into a new line of business, markets, products, services etc . It allows the company have other sources of revenue generation rather than just a source.

As a company grow, there would be opportunities for diversification in terms of adding new markets, customers, products etc. The reason is to enable the company have additional revenue should the source of initial revenue cease due to either competition or harsh economic conditions.

Example of diversification is adding of a new line of vehicle like heavy trucks by a car manufacturing company.

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-lavira : )

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