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BUSA 4980 Exam 2 Prep with Questions and Answers A strategy through which the firm sells its goods or services outside its domestic market. (Chapter 8) ANSWER International Strategy What four incentives exist for firms to internationalize their operations and sales? (Chapter 8) ANSWER - To gain access to new customers - To achieve lower costs - To capitalize on core competencies - To spread business risk across When international strategies are successful, firms obtain three basic benefits. What are they? (Chapter 8) ANSWER - Increased Market Size - Economies of Scale & Learning - Location Advantages What are the 3 risks of international diversification? (Chapter 8) ANSWER - Political Risks - Economic Risks - Complexity of managing international strategy Deliver economies of scale by creating regional and/or global operations
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