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What Can Happen When International Rivals Compete Against One Another

Question 77

Multiple Choice

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


A) Businesses create attractive industries which would have badly deteriorated.
B) Would create a business line up that consists of too many slow-growth, declining, low-margin, or competitively weak businesses.
C) A greater diversity in the types of value chain activities between each business.
D) The deterrence effect that restrains them from 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) Increased shareholder interests by concentrating corporate resources on foreign business activities to contend for market leadership.

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