Small-Scale Entry into a Foreign Market Makes It Difficult to Build

question 76

Multiple Choice

Small-scale entry into a foreign market makes it difficult to build market share because it

• A) necessitates rapid entry into a foreign market.
• B) is associated with a lack of commitment demonstrated by the foreign firm.
• C) leads to escalating strategic commitments.
• D) requires that extra time be spent in analyzing a foreign market.
• E) leads to increased exposure to a foreign market.

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Definitions:

Plant Asset

Long-term tangible assets that are used in the operations of a business and are not intended for sale.

Book Value

The value of an asset as recorded on a company's balance sheet, calculated as the cost of an asset minus accumulated depreciation.

Double Declining-balance

An accelerated method of depreciation where an asset's book value is reduced at double the rate of its straight-line depreciation.

Accelerated Depreciation

A method of depreciation used for accounting or income tax purposes that allows higher deductions in the earlier years of the useful life of an asset.