Which of the Following Is True of Market Entry by an International

question 131

Multiple Choice

Which of the following is true of market entry by an international firm considering foreign expansion?

• A) Politically unstable nations, by virtue of their higher potential for growth, are the best foreign markets.
• B) The value an international business can create in a foreign market does not depend on the nature of indigenous competition.
• C) The avoidance of pioneering costs that a later entrant has to bear is a first-mover advantage.
• D) Strategic commitments have minor influence on business decisions.
• E) Entering a large developing nation before most other international businesses on a large scale is associated with high levels of risk.

---

Definitions:

Conflict

A disagreement or argument between individuals or groups due to differing views, values, or interests.

Avoidance

A psychological defense mechanism whereby individuals steer clear of thoughts, feelings, or behaviors that may result in anxiety or distress.

Compromising

A conflict resolution strategy where each party gives up something to reach a mutually acceptable solution.

Collaborating

Working jointly with others or together especially in an intellectual endeavor to achieve a common goal or outcome.