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Which of the Following Is Not an Advantage of a Small-Scale

Question 53

Multiple Choice

Which of the following is not an advantage of a small-scale entry?


A) A small-scale entrant is more likely to be able to capture first-mover advantages associated with demand preemption,scale economies,and switching costs.
B) Small-scale entry is a way to gather information about a foreign market before deciding how best to enter.
C) By giving the firm time to collect information,small-scale entry reduces the risks associated with a subsequent large-scale entry.
D) Small-scale entry allows a firm to learn about a foreign market while limiting the firm's exposure to that market.

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