In practice, when expanding into other countries, firms have been observed to follow a sequential search pattern as described in the behavioral theory of the firm.

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The statement is true. The behavioral theory of the firm suggests that firms tend to follow a sequential search pattern when expanding into other countries, which involves exploring less risky and more familiar markets first before moving on to riskier and less familiar ones. This is based on the assumption that firms have bounded rationality and cannot consider all possible alternatives simultaneously, but must search for and evaluate options sequentially.

In Practice, When Expanding into Other Countries, Firms Have Been