A firm's profit potential and control over marketing activities increases as it moves from exporting to direct investment as a global market entry strategy. But so does the firm's

Question

Quizplus · Accepted Answer

As a firm moves from exporting to direct investment, its financial commitment and risk also increase. Direct investment involves higher initial costs, such as building or acquiring facilities and hiring personnel, which can pose a risk if the market conditions or economic environment disagree with the firm's expectations.

A Firm's Profit Potential and Control Over Marketing Activities Increases