The Liability Associated with Foreign Expansion Is Greater for Foreign
The liability associated with foreign expansion is greater for foreign firms that
A)choose to ride on an early entrant's investments.
B)use countertrade agreements.
C)enter a national market early.
D)ride down the experience curve behind their rivals.
E)avoid pioneering costs.
The probability of survival for an international business increases if it
A)enters a national market after several other foreign firms have already done so.
B)avoids the use of countertrade agreements.
C)enters a national market early.
D)enters a foreign market via turnkey projects.
E)avoids engaging in joint ventures.
Which of the following is a risk of being the first to enter developing nations like India and China on a large scale?
A)lower potential for long-term rewards
B)absence of prior foreign entrants
C)lack of control over quality
D)fear of rapid imitation of technology
E)high management turnover
In international business,an advantage of being a late entrant in a foreign market is the ability to
A)create switching costs that tie customers into products or services.
B)capture demand by establishing a strong brand name.
C)build sales volume and ride down the experience curve before early entrants.
D)ride on an early entrant's investments in learning and customer education.
E)create a cost advantage over first movers.