Which of the following is true of market entry by an international firm considering foreign expansion?
A) Politically unstable nations, by virtue of their higher potential for growth, are the best foreign markets.
B) The value an international business can create in a foreign market does not depend on the nature of indigenous competition.
C) The avoidance of pioneering costs that a later entrant has to bear is a first-mover advantage.
D) Strategic commitments have minor influence on business decisions.
E) Entering a large developing nation before most other international businesses on a large scale is associated with high levels of risk.

Question

Quizplus · Accepted Answer

Entering a large developing nation before most other international businesses on a large scale is associated with high levels of risk. This is because such nations may have insufficient infrastructure, untested market conditions, political instability, and other risks that can be difficult to manage.

Which of the Following Is True of Market Entry by an International