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The main difference between the related constrained level of diversification and the related linked level of diversification is:

A cross-border strategic alliance occurs when firms based in the same country combine their resources to create a competitive advantage that can be realized in international markets

When a firm initially pursues an international business-level strategy, the resources and capabilities established in the home country frequently allow the firm to pursue the strategy into markets located in other countries

An increase in the value of the U.S. dollar is an example of an economic risk in that it can reduce the value of U.S. multinational firms’ international assets and earnings in other countries

Part of the attractiveness of cross-border alliances is that the full range of entry modes is available in virtually all countries in which firms seek to geographically diversify

Firms are more likely to enter a market through acquisition when high product loyalty is present in the industry

The term “conglomerates” refers to firms using the __________ diversification strategy.

In the final analysis, firms use merger and acquisition strategies to improve their ability to create value for all stakeholders, including stockholders

Location advantages are influenced by costs of production, access to natural resources and critical supplies, as well as the needs of customers, but not culture

The stabilization of returns through international diversification helps reduce a firm’s overall risk