Firms That Internationalize After Being Domestically Established Have to Overcome

question 59

Multiple Choice

Firms that internationalize after being domestically established have to overcome all of the following barriers except:

• A) their domestic orientation.
• B) their internal domestic political ties.
• C) their domestic decision-making inertia.
• D) their anti-risk seeking behavior.

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Definitions:

Investments

Assets or items that an individual or entity purchases with the expectation that it will generate income or appreciate in value over time.

Moral Hazard

The risk that a party insulated from risk may behave differently than if they were fully exposed to the risk.

Underpricing

Underpricing refers to setting the initial sales price of a new product or service below market value, often used to attract customers quickly.