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What Can Happen When International Rivals Compete Against One Another

Question 120

Multiple Choice

What can happen when international rivals compete against one another in multiple-country markets?


A) It could create attractive industries that would have otherwise badly deteriorated.
B) It could produce a business lineup consisting of too many slow-growth, declining, low-margin, or competitively weak businesses.
C) It could create a greater diversity in the types of value chain activities between each business.
D) It could initiate a deterrence effect that encourages mutual restraint in taking aggressive action against one another due to the fear of a retaliatory response that might escalate the battle into a cross-border competitive war.
E) It could increase shareholder interests by concentrating corporate resources on foreign business activities to contend for market leadership.

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