Which of the following is the most likely outcome of a foreign firm entering a developed nation on a small scale after other international businesses in the firm's industry?
A)Capturing first-mover advantages
B)Higher pioneering costs
C)Rapid increase in market share
D)Limited future growth potential
E)Increase in sales volume

Question

Quizplus · Accepted Answer

Entering developed nations after other international businesses in the firm's industry, and entering on a small scale to first learn more about those markets, will be associated with much lower levels of risk. However, the potential long-term rewards are also likely to be lower because the firm is essentially forgoing the opportunity to capture first-mover advantages and because the lack of commitment signaled by small-scale entry may limit its future growth potential.

Which of the Following Is the Most Likely Outcome of a Foreign