_______________ costs arise when the business system in a foreign country is so different from that in a firm's home market that the enterprise has to devote considerable effort,time,and expanse to learning the rules of the game.
A) Pioneering
B) Early entry
C) Introductory costs
D) Inaugural costs
E) Primary entrant

Question

Quizplus · Accepted Answer

Pioneering costs arise when a company ventures into a new market with a significantly different business system than its home market. These costs emerge from the need to learn the rules of the game, such as cultural differences, unfamiliar regulations, and challenging institutional environments. Companies often need to invest time, effort, and resources to adapt their strategies and operations to fit the local market, increasing their overall costs. Options B, C, D, and E do not accurately describe the costs associated with entering a new foreign market.

_______________ Costs Arise When the Business System in a Foreign