Which of the Following Is True About the Market Entry

question 120

Multiple Choice

Which of the following is true about the market entry strategy of direct investment?

• A) It allows a foreign firm to take advantage of a domestic company's political savvy and market position.
• B) It relies on export merchants to analyze the local market.
• C) It provides the lowest level of risk for a firm.
• D) It relies on intermediaries to represent the company in a target country.
• E) It provides the lowest level of control for a firm.

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Definitions:

Seasonality

Periodic fluctuations in economic or financial activity that recur with similar intensity during the same season of each year.

U.S. GDP

The total market value of all final goods and services produced within the United States in a given period, serving as a broad measure of overall economic activity.

Circular Flow Diagram

A visual model of the economy that shows how money flows through markets among households and firms, illustrating economic interactions.

Payments

Transactions or transfers of money or equivalents as a form of settling a debt or fulfilling an obligation.