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  1. The correct option is C,internationally diversified firms earn greater returns on their innovations through larger or more numerous markets

    Explanation:

    Internally diversified firms are businesses that have presence in  different economic and political regions of the world such that adverse impact in one market can be netted off against the impressing business performance in another market,overall the return is optimized as against a business whose presence is only in the domestic market,exposed to market uncertainties in that market.

    Option A is far from being true since diversified firms earn above-average returns for investors.

  2. If nations should diversify it would lead to long-term economic development.

    Explanation:

    A diversified economy generates a sustainable loop of economic development in which enterprises are increasingly supporting each other and developing wider, contributing to the growth of industries that benefit them.

  3. Answer with its Explanation:

    a). The total revenue of Volkswagen and BMW in the 2012 segment given shows that the revenue is $192,676 and BMW which is $76,848. As the revenue of Volkswagen is more than the BMW hence Volkswagen is more multinational.

    b). The regional sales section shows that the Volkswagen is more internationally recognized as per the regional sales which is substantially higher than the regional sales of BMW. So its crystal clear that Volkswagen is the one which more internationally diversified.

    c). The 2012 segment information shows that the BMW greatest growth was in China then in USA and then greatest growth was in Rest of the Europe and the greatest decline was in Rest of the America.

    For Volkswagen, the greatest growth was in North America then in Asia and then in South America. The greatest decline wasn't seen in the segment information but lowest increase was seen in Germany and then in the European countries.

  4. If nations should diversify it would lead to long-term economic development.

    Explanation:

    A diversified economy generates a sustainable loop of economic development in which enterprises are increasingly supporting each other and developing wider, contributing to the growth of industries that benefit them.

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