Which of the following is true of significant strategic commitments to foreign expansion made by an international firm?
A) Significant strategic commitments of a foreign firm have little or no influence on the nature of competition in a market.
B) The large-scale entry of a foreign firm does not give other foreign institutions considering entry into the market a reason to pause.
C) The large-scale entry of a foreign firm gives customers reasons for believing that the foreign firm will not remain in the market for the long run.
D) Significant strategic commitments are associated with higher strategic flexibility of the international firm.
E) Significant strategic commitments are neither unambiguously good nor bad.

Question

Quizplus · Accepted Answer

Significant strategic commitments to foreign expansion can have both positive and negative effects. On one hand, they may bring in new resources, markets, and opportunities for growth. On the other hand, they can also bring increased competition, higher costs, and unforeseen risks. Thus, significant strategic commitments are neither unambiguously good nor bad, and firms must carefully evaluate the costs and benefits of such commitments before making a move.

Which of the Following Is True of Significant Strategic Commitments