International Business Competing in the Global Market Place Study Set 4
Quiz 15: Entry Strategy and Strategic Alliances
A Small-Scale Entrant Is More Likely Than a Large-Scale Entrant
A small-scale entrant is more likely than a large-scale entrant to capture first-mover advantages associated with demand preemption,scale economies,and switching costs.
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Small-scale entry allows a firm to learn about a foreign market while limiting the firm's exposure to that market.
Exporting is advantageous because it avoids the cost of establishing manufacturing operations in the host country and because it may help a firm achieve experience curve and location economies.
Exporting is most appropriate when lower-cost locations for manufacturing the product can be found abroad.
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