One advantage of direct investment when entering a new global market is that
A)intermediaries have the potential to harm the brand.
B)the firm entering the foreign market does not have to pay royalties to the government.
C)the company forgoes control over its product.
D)the firm has a better understanding of local market conditions.
E)this method is likely to provide the fewest subsidies from the host country's government.

Question

Quizplus · Accepted Answer

Direct investment allows the firm to have a better understanding of local market conditions, which can lead to better decision-making and a greater chance of success in the foreign market.

One Advantage of Direct Investment When Entering a New Global