Conditions Used to Be Such That the First Entrant into a Foreign

question 2

Multiple Choice

Conditions used to be such that the first entrant into a foreign market could count on being the leader for years, but in today's marketplace, the competitive edge is not as great because:

• A) of competing technology and a frequent lack of intellectual property rights protection.
• B) competing firms were there first.
• C) globalization and the Internet do not allow there to be a "first firm".
• D) most countries do not allow startup firms to enter into the market.

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Definitions:

Government Revenue

The income earned by the government from taxes, fees, and other sources to finance its operations.

World Price

The global market price of a commodity, determined by supply and demand factors on an international scale.

Foreign Exporters

Companies or entities that sell goods and services produced in one country to other countries.

Import Quota

A government-imposed limit on the quantity of a certain good that can be imported into a country over a specified period of time.