Internationally diversified firms: a. are generally unable to achieve high levels of synergy because of differences in cultures. b. may need to decrease international activities when domestic profits are poor. c. are more likely to produce below-average returns for investors in the long run. d. earn greater returns on their innovations through larger or more numerous markets.

In which of the following games is it clearly the case that the cooperative outcome of the game is good for the two players and bad for society? a. two oil companies own adjacent oil fields over a common pool of oil, and each company decides whether to drill one well or two wells.b. two airlines dominate air travel between city a and city b, and each airline decides whether to charge a "high" airfare or a "low" airfare on flights between those two cities.c. two superpowers decide whether to build new weapons or to disarm.d. in all of the above cases, the cooperative outcome of the game is good for the two players and bad for society