Internationally Diversified Firms

question 116

Multiple Choice

Internationally diversified firms:

• A) earn greater returns on their innovations through larger or more numerous markets.
• B) are more likely to produce below-average returns for investors in the long run.
• C) may need to decrease international activities when domestic profits are poor.
• D) are generally unable to achieve high levels of synergy because of differences in cultures.

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Definitions:

Albert Bandura

A psychologist known for his work in social learning theory, emphasizing the role of observational learning, self-efficacy, and reciprocal determinism in behavior.

Five-factor

A model describing human personality traits using five broad dimensions: openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Extraversion Test

A psychological assessment tool designed to measure one's level of extraversion, indicating how outgoing and socially interactive an individual is.

Social-cognitive Theories

A framework that emphasizes the role of cognitive processes and social interactions in understanding behavioral change and development.