Escalation of commitment is best described as the ________.
A)strategy of first entering a country on a small scale
B)process of entering a country because "everyone else is going there"
C)expectation of a higher return in more politically risky environments
D)increased likelihood of investing in a country because of having spent considerable time and money in examining it

Question

Quizplus · Accepted Answer

Escalation of commitment refers to the tendency to continue investing in a project or decision even though it may no longer be rational, due to the amount of resources already invested. In the context of international business, a firm may become more likely to invest in a country after investing considerable resources in examining it, even if the potential return on investment is uncertain or declining.

Escalation of Commitment Is Best Described as the ________