When buyer firms that have a great deal of bargaining power move internationally, components suppliers are often forced to internationalize in order to retain the buyer firm's business.

Question

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This is true because if the components supplier does not internationalize, the buyer firm can easily switch to another supplier in the international market that offers more favorable terms. Thus, the supplier is forced to adapt in order to retain the business of the powerful buyer firm.

When Buyer Firms That Have a Great Deal of Bargaining