Even If Direct Duplication of a Firm's International Strategies Is

question 21

Multiple Choice

Even if direct duplication of a firm's international strategies is ________, ________ might still exist that limit the ability of that strategy to generate sustained competitive advantages.

• A) costly; substitutes
• B) inexpensive; substitutes
• C) costly; fragmentation
• D) inexpensive; fragmentation

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Definitions:

New Shares

Additional stock issued by a company, potentially diluting the ownership percentage of existing shareholders.

Dividend Income

Earnings obtained by holding company shares, typically dispensed from the firm's earnings.

Optimal Dividend Policy

The best strategy a company can adopt for the payment of dividends, balancing between retaining earnings for growth and satisfying shareholders.

Residual

The amount remaining after the greater part has been deduced; in finance, often refers to the residual value or remaining interest in an asset.