Which of the following is a disadvantage of small-scale entry for an international firm considering foreign expansion?
A)The possibility of escalating commitment leading to major financial losses
B)The limited availability of resources for use in other markets
C)The lack of flexibility associated with strategic commitments
D)The increase in economic exposure due to minimal time spent in evaluating a foreign market
E)The difficulty of building market share and capturing first-mover advantages

Question

Quizplus · Accepted Answer

The lack of commitment associated with small-scale entry may make it more difficult for the small-scale entrant to build market share and to capture first-mover or early-mover advantages. The risk-averse firm that enters a foreign market on a small scale may limit its potential losses, but it may also miss the chance to capture first-mover advantages.

Which of the Following Is a Disadvantage of Small-Scale Entry