What Are Core Competencies? How Do Firms That Adopt an International

question 6

Essay

What are core competencies? How do firms that adopt an international strategy utilize their core competencies? How do firms that adopt a transnational strategy utilize their core competencies?

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Definitions:

Financial Distress Costs

Expenses and losses incurred by a firm due to financial distress, including bankruptcy costs, agency costs, and the cost of lost opportunities.

Tax Benefit

A reduction in tax liability offered by the government for specific expenses, investments, or other financial decisions, leading to a decrease in the total taxes paid.

Debt-Equity Ratio

A metric for evaluating a firm's financial leverage, determined by dividing its total debts by the equity held by shareholders.

Cost of Debt

The actual rate a firm incurs on its overall debt, representing the cost of acquiring funds.