Final answer:
It is false that international firms must solely rely on exporting to establish and expand overseas operations, as there are multiple strategies available, such as direct investment and strategic partnerships.
Step-by-step explanation:
The statement that international firms must export their products or services to establish and expand their overseas operations is false. Simply exporting products is not the only strategy for international firms to expand globally. Firms can also consider other methods such as direct investment in foreign countries, forming strategic partnerships or alliances, licensing, and franchising. For example, a company can create a foreign subsidiary, acquire an existing company in the overseas market, or enter into a joint venture with a local firm. Additionally, international trade is influenced by the demand and supply model, which determines the quantities of goods and services traded internationally and the prices at which these trades occur.
While some concerns are raised regarding the environmental impact and national security due to international trade, these concerns do not negate the various methods a firm can use to participate in the global marketplace. Governments may implement trade restrictions to protect national interests, balancing the advantages of global trade against potential negative outcomes.