One disadvantage of direct investment when entering a new global market is
A) intermediaries have the potential to harm the brand.
B) the firm entering the foreign market must pay royalties to the government.
C) the company forgoes control over its product.
D) the financial commitments involved.
E) this method is likely to provide the fewest cost savings relative to the other global market entry options.

Question

Quizplus · Accepted Answer

Direct investment involves significant financial commitments, including setting up operations, infrastructure, and hiring local staff, which can be a disadvantage due to the high costs and risks involved.

One Disadvantage of Direct Investment When Entering a New Global