Which of the Following Is the Most Likely Outcome of a Foreign

question 105

Multiple Choice

Which of the following is the most likely outcome of a foreign firm entering a developed nation on a small scale after other international businesses in the firm's industry?

• A)Capturing first-mover advantages
• B)Higher pioneering costs
• C)Rapid increase in market share
• D)Limited future growth potential
• E)Increase in sales volume

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Definitions:

Positive Economics

An aspect of economics that focuses on objective analysis and descriptions of how the economy functions, without prescribing policies.

Income Inequality

The unequal distribution of income and wealth across different groups within a society, often leading to social and economic disparities.

Perverse Incentives

Incentives that have unintended and undesirable effects that are contrary to the intentions behind their creation.

Before-Tax Income

The total personal income earned by an individual or household before any taxes have been deducted.