Final answer:
The assertion that CEOs must target the biggest market share in every global region is false. Strategic decisions are based on comparative advantage and the ability to efficiently produce goods and services while considering market competition and strategic positioning. CEOs may not always aim for the largest market share, but rather for advantageous and profitable segments of a market.
Step-by-step explanation:
The statement that 'A CEO has to look at the entire global economy and then put the company's resources where they will capture the biggest market share of every region' is false. While CEOs must be aware of opportunities in the global market, decisions should be guided by principles of comparative advantage, where a company leverages its strengths in producing goods or services more efficiently than competitors. This takes into account factors such as the education of workers, economies of scale, and specialized knowledge within the value chain.
Moreover, global companies influence economic growth by providing goods in regions that cannot produce them themselves, and ease of access across borders is essential for global market success. However, increased globalization and advances in technology have also heightened competition, implying that firms do not solely aim for the biggest market share but also seek strategic positioning in the marketplace, which may sometimes involve niche markets or differentiated products rather than mass market dominance.
Finally, the idea that CEOs are champions of competition is a misconception, as firms naturally seek market conditions that minimize competition to maximize profits, akin to desiring monopoly or oligopoly conditions.