Risk in emerging industries is created by the following factors:
A)Market and technological uncertainties
B)Market and cost uncertainties
C)Rivalry and political uncertainties
D)Having different customer tastes in emerging countries from your home market

Question

Quizplus · Accepted Answer

Emerging industries are characterized by market and technological uncertainties due to a lack of established market demand and the pace of technological change. This creates risk for firms seeking to enter such industries. Option B focuses on cost uncertainties which may not be entirely applicable to emerging industries, while option C deals with rivalries and political uncertainties which are not unique to emerging industries. Option D highlights the risk of differences in customer tastes, but it is not the only or most critical risk factor in emerging industries. Therefore, A is the best choice.

Risk in Emerging Industries Is Created by the Following Factors