What is the primary reason for over diversification

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What is the primary reason for over diversification? Is it industrial policies, such as taxes and antitrust regulation, or do firms over diversify because managers pursue their own self-interest through increased compensation, and a reduced risk of job loss? Why?

By the year 2019 will large firms be more or less diversified than they are today? Why? Will the trends regarding diversification be identical in Mexico, the United States, and Japan?

Reference no: EM132109799

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