If Entry Barriers Are Low and the Industry Is Populated

question 86

Multiple Choice

If entry barriers are low and the industry is populated by small firms,internal development may be the preferred mode of entry.But if entry barriers cannot be overcome readily,then the only feasible entry route may be through a(n) :

• A) acquisition of a well-established company.
• B) acquisition and joint venture,although the former is more an uncertain choice due to a lack of industry experience the company has.
• C) joint venture,because it calls for sharing the risks.
• D) acquisition entry because the acquiring firm constrains the barriers to entry.
• E) joint venture since the firm can gain valuable industry experience.

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Definitions:

Persuasibility

The extent to which an individual is susceptible to being persuaded or influenced by arguments or messages.

Persuasive Communications

Messages designed to influence or alter the audience's beliefs, attitudes, intentions, motivations, or behaviors.

Message Content

Message content refers to the actual information, ideas, or themes conveyed in a communication act, regardless of the medium used.

Classical Conditioning

A learning process that occurs when two stimuli are repeatedly paired; a response that is at first elicited by the second stimulus is eventually elicited by the first stimulus alone.