The liability associated with foreign expansion is greater for foreign firms that
A) choose to ride on an early entrant's investments.
B) use countertrade agreements
C) enter a national market early.
D) ride down the experience curve behind their rivals.
E) avoid pioneering costs.

Question

Quizplus · Accepted Answer

Entering a national market early often involves higher risks and costs, such as pioneering costs, which can increase the liability associated with foreign expansion.

The Liability Associated with Foreign Expansion Is Greater for Foreign