External incentives to diversify include

Question

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External incentives to diversify can arise from changes in antitrust regulations and tax laws, which may make it more advantageous for firms to diversify their operations. The other options are not necessarily external incentives, as they may be driven by internal factors or market conditions. For example, a firm may choose to diversify because of poor performance, but this is an internal incentive. Similarly, pressure from stockholders may be driven by market conditions or a desire to maximize shareholder value, rather than external factors.

External Incentives to Diversify Include