Which Is Not True Regarding Geographic Diversification and Firm Performance

question 15

Short Answer

Which is not true regarding geographic diversification and firm performance?
a. U-shaped relationship at low level of internationalization.
b. Initially a negative effect of international expansion on performance.
c. Affected by the liability of foreignness.
d. Inverted-U shape at moderate to high levels of internationalization.
e. Positive only at high levels of internationalization.

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Definitions:

Implied-in-fact Contract

is an agreement derived from the actions, conduct, or circumstances of the parties involved, rather than from explicit written or spoken terms.

Negotiable Instrument

An official document that assures the payment of a fixed sum of money, payable either on demand or at a designated time, with the document bearing the name of the person obligated to pay.

Letter of Credit

A financial document issued by a bank that guarantees a buyer's payment to a seller within a specified timeframe.

Certificate of Deposit

A time-bound deposit held at a bank or financial institution that offers a fixed rate of interest.