Which of the following statements is true about the firm-level consequences of market globalization?
A)The globalization of markets has narrowed down new business opportunities for internationalizing firms.
B)Globalization drives firms to relocate key value-adding activities to the most advantageous locations around the world.
C)A firm's value chain is not subject to internationalization.
D)Through offshoring, a firm relocates a major value-chain activity by establishing a factory or subsidiary in the home market.

Question

Quizplus · Accepted Answer

Globalization has driven firms to seek out and relocate key value-adding activities to the most advantageous locations around the world, such as finding cheaper labor, more favorable tax policies, or better access to resources or technology. This can result in greater efficiency and cost savings for the firm, but it can also lead to job losses and economic disruption in the home market. The globalization of markets has actually increased the number of new business opportunities for internationalizing firms, not narrowed them down. A firm's value chain is subject to internationalization, as it is a key driver of competitiveness in a global marketplace. Offshoring involves relocating value-chain activities to a foreign location, not the home market.

Which of the Following Statements Is True About the Firm-Level