A risk-averse firm that enters a foreign market on a _______________ may limit its potential losses, but it may also miss the chance to capture ______________ advantages.

Question

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A risk-averse firm entering a foreign market on a small scale (such as through limited initial investment or cautious market entry strategies) may indeed limit its potential losses because it is not committing extensive resources upfront. However, by doing so, it might also miss the chance to capture first-mover advantages. First-mover advantages refer to the benefits a company gains by being the first to enter a new market or develop a new product or service. These advantages can include establishing strong brand recognition, securing access to scarce resources, and achieving cost advantages through economies of scale before competitors enter the market.

A Risk-Averse Firm That Enters a Foreign Market on a _______________