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28. A strategy of diversification is designed to increase shareholder value by acquiring other companies. Which of the following is not a good reason to
28. A strategy of diversification is designed to increase shareholder value by acquiring other companies. Which of the following is not a good reason to diversify?
a. leverage your resources and capabilities
b. reduce cost/improve access to resources
c. acquire technology assets or products that complement your present business
d. company for sale can be bought cheap
e. take advantage of a powerful or known brand
29. In addition to foreign acquisitions and export strategies, licensing, franchising and strategic alliances can be effective ways to enter into and compete in foreign markets.
a. true
b. false
10.
30 Which of the following is not a good reason to compete in International markets?
a. access new customers
b. lower costs
c. gain access to resources and capabilities in foreign markets
d. spread business risk over a wider market base
e. give management some international experience
f. exploit your core competencies
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