There Are Many Reasons Why a Company Might Prefer to Be

question 80

Multiple Choice

There are many reasons why a company might prefer to be a follower in a new market, not a first entrant.Which of these is not one of those reasons?

• A)reduced profits because the market is already gone
• B)fewer pitfalls as the follower can see the mistakes of the first-mover
• C)better developed marketing channels
• D)competitive response from other MNCs and local competitors
• E)none of the above

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Definitions:

Spillover Effect

The phenomenon where an occurrence in one domain of an individual's life affects another domain or area, often seen in emotional or behavioral responses.

Drinking Alcohol

The consumption of beverages containing ethanol, which is a psychoactive substance that can affect mood, cognition, and behavior.

Brief Periods

Short spans of time, often used in reference to transient events or conditions.

Consciously Restrain

The deliberate and aware effort to control or limit one's actions, reactions, or emotions.