Managers need to understand the rules of the game, particularly the laws, governing domestic and international competition around the world. Savvy managers know themselves and their opponents and develop the skills and knowledge necessary to effectively analyze their competitors.

Provide an example of conditions under which a firm might assume each of the four strategies to confront a multinational company (defender, extender, dodger, and contender). Describe a situation in which a company might signal its intention to cooperate with a competitor.