Final answer:
A small company can significantly increase its power in international business negotiations if it has numerous good alternatives while its larger counterparts do not, allowing for a stronger negotiating position.
Step-by-step explanation:
In the context of international business negotiations, it's crucial to comprehend that power dynamics can vary greatly regardless of company size. A small company may possess greater leverage in negotiations if it has many good alternatives and their larger counterparts do not (Option D). This position allows the smaller company to operate from a platform of strength, having the ability to walk away and consider other opportunities if the terms are not favorable. The scarcity of viable alternatives for the larger counterpart may force them into more accommodating or compromising stances during negotiations.
International trade dynamics, such as reductions in trade barriers and globalization, have exposed companies to a variety of options. Small countries benefit immensely from these open economies that allow for economies of scale, which is usually harder to achieve within a closed economy. Multinational corporations (MNCs) might have substantial influence over regulations in smaller economies due to their financial clout, however, smaller firms can still exert significant negotiation power on the international stage should they find multiple market options.