One Disadvantage of Direct Investment When Entering a New Global

question 127

Multiple Choice

One disadvantage of direct investment when entering a new global market is

• A) intermediaries have the potential to harm the brand.
• B) the firm entering the foreign market must pay royalties to the government.
• C) the company forgoes control over its product.
• D) the financial commitments involved.
• E) this method is likely to provide the fewest cost savings relative to the other global market entry options.

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Definitions:

Coil Winding Leads

The ends of the wire used in coil windings, serving as connections points for electrical current to enter or leave the coil.

NEMA

An organization representing electrical equipment and medical imaging manufacturers, known for developing performance standards to promote safety and efficiency.

Locked-rotor Starting Current

The high current drawn by an electric motor at startup when the rotor is not yet moving, also known as the starting current.