In terms of an international firm considering foreign expansion,_____ include the costs of promoting and establishing a product offering,and educating customers.
A) Sunk costs
B) Pioneering costs
C) Opportunity costs
D) Intangible costs
E) Standard costs

Question

Quizplus · Accepted Answer

Pioneering costs refer to the expenses incurred by a firm when it enters a new market, such as costs associated with promoting and establishing a product offering, educating customers, and building distribution channels. These costs are especially high when a firm is the first to enter into a new market, hence the term "pioneering." Sunk costs are those that have already been incurred and cannot be recovered, opportunity costs refer to the benefits that are forgone when choosing one alternative over another, intangible costs are those that are difficult to quantify, and standard costs are predetermined costs based on historical data.

In Terms of an International Firm Considering Foreign Expansion,_____ Include