1. The relative bargaining power of the focal firm and (according to the traditional view) the degree of integration helps answer which of the following questions?

A. Why do firms differ?

B. How do firms behave?

C. What determines the scope of the firm?

D. What determines the international success and failure of firms?

E. All of the above.

2. Which is a reason for outsourcing as opposed to integration?

A. Less expense.

B. Strategic flexibility is enhanced.

C. Those outside the firm are often more competitive.

D. The activity is not crucial to the core business.

E. All of the above.