What Can Happen When International Rivals Compete Against One Another

question 36

Multiple Choice

What can happen when international rivals compete against one another in multiple-country markets?

• A) Businesses create attractive industries that would have otherwise badly deteriorated.
• B) It could produce a business lineup consisting of too many slow-growth,declining,low-margin,or competitively weak businesses.
• C) It could create a greater diversity in the types of value chain activities between each business.
• D) It could initiate a deterrence effect that encourages mutual restraint in taking aggressive action against one another due to the fear of a retaliatory response that might escalate the battle into a cross-border competitive war.
• E) It could increase shareholder interests by concentrating corporate resources on foreign business activities to contend for market leadership.

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Definitions:

Verbal Communication

The process of expressing ideas and conveying messages through spoken words to another individual or group.

Assumptions

Beliefs or statements taken to be true without requiring empirical evidence.

Reality

The state of things as they actually exist, as opposed to how they may appear or may be thought to be.

Oral Communication

The process of expressing information or ideas through spoken words.