Assertion (A) The perceived risk of operating a domestic firm in international environment is much higher.
Reason (R) The international environment is more volatile and the domestic firm generally does not have full information about the environment.

A. Both (A) and (R) are correct

B. Both (A) and (R) are incorrect

C. (A) is Correct while (R) is incorrect

D. (A) is incorrect while (R) is correct

Answer: Option A