A firm that enters many markets at once
A)runs the risk of spreading its limited management resources too thin.
B)becomes established in all the markets.
C)gets the time to learn about each market.
D)has fewer export opportunities.
E)reduces the costs of any subsequent failure.

Question

Quizplus · Accepted Answer

When a firm enters many markets at once, it may spread its limited management resources too thin. It becomes difficult for the firm to focus on every market and manage them effectively, which increases the risk of failure. Focusing on fewer markets allows the firm to allocate more resources and attention to each market and maximize their chances of success.

A Firm That Enters Many Markets at Once