Successful global expansion requires the transfer of core competencies

QUESTION

Successful global expansion requires the transfer of core competencies to foreign markets where indigenous competitors lack them.

Indicate whether the statement is true or false.

ANSWER

TRUE
Since core competencies are, by definition, the source of a firm’s competitive advantage, the successful global expansion is based not just on leveraging products and selling them in foreign markets, but also on the transfer of core competencies to foreign markets where indigenous competitors lack them.