2. According to Chapter 10, there are benefits of and risks to expanding internationally. Examine these in light of Levendary's entry into China. Why should the company expand internationally? a. They gain access to a larger market, but can they gain economies of scale and scope? What are the specic resources and capabilities that might allow them to generate scale andfor scope advantages from entering China? b. Do they gain access to lowcost input factors? c. Can they develop new competencies like location economies with specific value chain activities? :1. 1l.|'|.5"l]at about disadvantages? Evaluate the costs of going global: Liability of foreignness, loss of reputation, loss in intellectual property, over taxing resources