A firm can pass the better-off test in determining the viability of international diversification when:
A) it licenses its resources to a foreign firm.
B) it can sell its existing product in a different country.
C) it acquires extremely low-cost industries.
D) it spends more time on implementation processes.

Question

Quizplus · Accepted Answer

The better-off test requires that international diversification should lead to the firm being better off. Selling an existing product in a different country would allow the firm to access new markets without incurring significant additional costs or risks. Licensing resources to a foreign firm may not be profitable to the firm in the long run. Acquiring low-cost industries or spending more time on implementation processes do not necessarily guarantee profitability or success in international diversification.

A Firm Can Pass the Better-Off Test in Determining the Viability