How will a business firm know if there is a demand for its product in another nation?
A) The company is willing to discuss royalty fees with other international firms.
B) There is a positive balance of payments.
C) A firm cannot know if such a demand exists.
D) The product is very successful in the company's home nation.
E) Due to the successful prior entry of a competitor firm with a similar product in the international market.

Question

Quizplus · Accepted Answer

The presence of a competitor firm that has successfully entered the international market with a similar product can indicate demand for that type of product in the new market. This suggests that consumers in that market are interested in such products, making it a viable option for another business to enter.

How Will a Business Firm Know If There Is a Demand