Three prerequisites that must be satisfied before a national firm can transform itself into a multinational firm include:

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a,c,and d are incorrect because scale-based advantages,knowledge-based advantages,and contractual capabilities are,by themselves,insufficient to justify the internationalization of operations.With much less effort a company often can sell or license its technology to foreign producers,franchise its brand name internationally,or sell its products abroad through local distributors,without having to set up its own offshore operations.

Three Prerequisites That Must Be Satisfied Before a National Firm