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The stabilization of returns through international diversification helps reduce a firm’s overall risk

Evidence suggests that acquisitions usually lead to favorable financial outcomes, especially for the acquiring firm

Which of the following is NOT a disadvantage of international acquisitions?

A merger is a strategy through which two firms agree to integrate their operations on a relatively coequal basis

In the cost-minimization approach to managing competitive strategies, the relationship between the firms is based on trust of the other partner

Michael Porter’s determinants of national advantage describe factors associated with the firm’s domestic environment that contribute to its dominance in a particular global industry

When the actual results of an acquisition strategy fall short of the projected results, firms consider using restructuring strategies

Cultural elements may affect location advantages in that business transactions are easier for a firm to complete when there is a strong cultural match with the institutions with which the firm is involved while implanting its international strategy

Coca-Cola and PepsiCo are examples of firms that have found it unnecessary to aggressively pursue international strategies because of extensive growth opportunities available in the U.S. market

Because there are still several industrial and consumer markets in which only domestic firms compete, many firms do not have to be able to compete internationally