Question 1

Firms that move into the international market expand their potential market by virtue of becoming a competitor outside their domestic economy.

Question 1 options:

	True
	False

Question 2

The sheer size of a company involved in multiple, international markets enables the firm to take advantage of economies of scale.

Question 2 options:

	True
	False

Question 3

For a company to earn a significant return on investment on capital equipment or research and development (R&D), it will always have to be a part of the international market.

Question 3 options:

	True
	False

Question 4

Problems may arise when a company either relocates to another country, thereby relying on foreign human capital, or when it moves a significant amount of capacity to another country and that country encounters a serious problem that significantly impacts its stability and functioning.

Question 4 options:

	True
	False

Question 5

There are numerous examples of how a company can achieve economies of scale. For example, when a company purchases its supplies at deep discounts because of its size, it experiences economies of scale.

Question 5 options:

	True
	False