The opportunity set of projects is typically smaller for MNEs than for purely domestic firms because international markets are typically specialized niches.

Question

Quizplus · Accepted Answer

The statement is false. MNEs often have a larger opportunity set of projects than purely domestic firms because they have access to a wider range of international markets and can benefit from economies of scale and scope. Additionally, MNEs may be able to leverage their global presence and expertise to pursue new business opportunities in multiple countries.

The Opportunity Set of Projects Is Typically Smaller for MNEs