Which of the Following Is an Example of a First-Mover

question 122

Multiple Choice

Which of the following is an example of a first-mover advantage?

• A) The ability to build sales volume in the foreign country
• B) The avoidance of pioneering costs that a later entrant has to bear
• C) The increased probability of surviving in a foreign market
• D) The opportunity to observe and learn from the mistakes of late entrants in the foreign market
• E) The ability to allow later entrants to the foreign market ride ahead on the experience curve

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Definitions:

Variable Costs

Charges that fluctuate in accordance with the scale of production or total volume produced.

Special Equipment

Tools, machinery, or devices designed for specific tasks or operations, often requiring specialized knowledge or skills to use effectively.

Contribution Margin

The surplus of sales revenue over variable costs, showing the extent to which revenue aids in covering fixed costs and generating profit.

Financial Advantage

The benefit gained in a financial context, such as lower costs, higher revenues, or competitive superiority.