MNC diversification into new territories is more likely to occur when:
A) Firms possess high endowments of intangible resources such as knowledge.
B) Firms are in information-intensive industries seeking intangible resources such as knowledge.
C) Firms' top management teams have an elite education, low average age and great international experience.
D) all of these

Question

Quizplus · Accepted Answer

All of these factors increase the likelihood of MNC diversification into new territories. Possessing high endowments of intangible resources such as knowledge and being in information-intensive industries seeking intangible resources such as knowledge make diversification a logical strategy to expand and utilize these resources. Top management teams with elite education, low average age, and great international experience are better equipped to analyze and navigate new markets and contribute to the success of diversification efforts.

MNC Diversification into New Territories Is More Likely to Occur