Which of the Following Is Most Likely a Disadvantage to Firms

question 61

Multiple Choice

Which of the following is most likely a disadvantage to firms who use exporting as an entry strategy?

• A) high cost of foreign market entry
• B) difficulties withdrawing from foreign markets
• C) The firm must acquire and dedicate capabilities to conduct complex transactions, which can strain organizational resources.
• D) high risk due to uncertainty in the political environment of the foreign market

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Definitions:

Speed of Service

The rate at which a business can complete a service or deliver a product, often a critical competitive advantage in fast-paced industries.

Distribution Strategy

A plan detailing how a company will deliver its products or services to customers, including channels, logistics, and geographic considerations.

The Product

Refers to any item or service that is created through a process and is offered for sale to customers.

Productivity

The efficiency with which an organization or individual converts inputs into outputs, often measuring how much work is done in a given amount of time.