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Essay text:
An international strategy results in international diversification. Firms pursue an international strategy to seek new opportunities to create value in international markets. The primary reasons firms pursue international diversification is to:
• Increase market size
• Increase return on investment
• Seek economies of scale, scope, and learning
• Obtain resources and achieve other location advantages
Firms that pursue an international strategy must decide whether to compete in all or many global markets, or to focus on a particular region. Competing in all markets provides the potential for economies because of the combined market size...
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