Final answer:
Internal audits are not an external event that would reveal the 'dark side' of core capabilities. These audits are internal checks, while technological advancements, economic downturns, and regulatory changes are external factors that could expose weaknesses.
Step-by-step explanation:
The negative aspects of a company's core capabilities, also known as the 'dark side' of core capabilities. The answer would be internal audits. Internal audits are conducted within the organization and are a self-assessment of its systems and processes, rather than an external event that could reveal weaknesses in core capabilities. In contrast, technological advancements, economic downturns, and regulatory changes are external events that might expose the dark side of a company's core capabilities by challenging their effectiveness, adaptability, or legality in the changing environment.
Regarding the events leading to capital deepening: a. A weak economy can cause businesses to hesitate in making long-term investments in physical capital, which would generally not lead to capital deepening. b. A rise in international trade, on the other hand, could encourage investment in capital to improve productivity and thus may lead to capital deepening. Some economic events not related to government policy that could cause aggregate demand to shift include changes in consumer confidence, fluctuations in foreign exchange rates, and variations in the income levels of consumers.