Large-Scale Entry Allows an International Firm to Learn About a Foreign

question 24

True/False

Large-scale entry allows an international firm to learn about a foreign market while limiting the firm's exposure to that market.

---

Definitions:

Market Equilibrium

The state where the quantity of a product demanded by consumers equals the quantity supplied by producers.

Determinants of Market Supply

Factors that influence the quantity of a good or service that producers are willing and able to sell at a given price, such as production costs, technology, and number of sellers.

Law of Demand

The economic principle that, all else being equal, there is an inverse relationship between the price of a good and the quantity demanded.

Other-Things-Equal Assumption

The assumption that factors other than those being considered are held constant. Also known as the ceteris paribus assumption.