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The proximity-concentration tradeoff describes the fact that establishing a foreign affiliate that replicates activities performed in the home market avoids trade costs but Group of

The proximity-concentration tradeoff describes the fact that establishing a foreign affiliate that replicates activities performed in the home market avoids trade costs but Group of answer choices sacrifices economies of scale in the performance of those activities distracts managers from the firm's core competencies puts the foreign affiliate closer to its competitors exposes the headquarters to additional foreign risk

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