Final answer:
The statement that firms' international activities are consistent because of similarities is false. Firms have different comparative advantages and strategies due to varying levels of productivity, worker education, and technological knowledge. Globalization and IT advancements increase competition and lead to varied international business approaches.
Step-by-step explanation:
The assertion that firms are fairly consistent in their international activities because of similarities in levels of experience, resources, and capabilities is False. The reality is that firms vary widely in the way they conduct their international operations. Various factors such as different levels of productivity, education of workers, knowledge bases of engineers and scientists, and the specific segments of value chains where they specialize, contribute to their comparative advantages and result in different approaches to international business.
The forces of globalization and advances in communications and information technology have significantly increased competition among firms by exposing them to competitors from various regions and countries. This heightened competition does not lead to uniformity but rather drives firms to differentiate their strategies based on their unique capabilities and the varying economic conditions they encounter globally.
Moreover, international trade allows even small economies to achieve economies of scale and partake in intra-industry trade, where countries can both import and export similar products, thereby benefiting from specialized learning, production efficiencies, and competitive variety.