Which of the following is the first basic entry decision that a firm contemplating foreign expansion must make?
A) When to enter a foreign market
B) On what scale to enter a foreign market
C) Which foreign markets to enter
D) Whether to enter a market before other firms and claim first-mover advantages
E) Whether to enter into licensing agreements or use the franchising model

Question

Quizplus · Accepted Answer

The first basic entry decision a firm contemplating foreign expansion must make is which foreign markets to enter. A firm must assess its resources and capabilities and identify which markets provide the best opportunities for growth and profitability. Only after deciding which foreign markets to enter can a firm consider when to enter, on what scale, and whether to enter before other firms. Licensing agreements and franchising models are also entry options, but they are not the first basic decision a firm needs to make.

Which of the Following Is the First Basic Entry Decision