Which of the following statements about small-scale entry is true?
A) The commitment associated with a small-scale entry makes it possible for the small-scale entrant to capture first-mover advantages.
B) Small-scale entry is a way to gather information about a foreign market before deciding whether to enter on a significant scale.
C) By giving a firm time to collect information, small-scale entry increases the risks associated with a subsequent large-scale entry.
D) Small-scale entry limits a firm's ability to learn about a foreign market thereby also limiting the firm's exposure to that market.

Question

Quizplus · Accepted Answer

Small-scale entry allows a firm to learn about a foreign market while limiting the firm's exposure to that market. By giving the firm time to collect information, small-scale entry reduces the risks associated with a subsequent large-scale entry. But the lack of commitment associated with small-scale entry may make it more difficult for the small-scale entrant to build market share and to capture first-mover or early-mover advantages.

Which of the Following Statements About Small-Scale Entry Is True