One Disadvantage of Direct Investment When Entering a New Global

question 127

Multiple Choice

One disadvantage of direct investment when entering a new global market is

• A) intermediaries have the potential to harm the brand.
• B) the firm entering the foreign market must pay royalties to the government.
• C) the company forgoes control over its product.
• D) the financial commitments involved.
• E) this method is likely to provide the fewest cost savings relative to the other global market entry options.

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Definitions:

Sluggishness

A state of being slow-moving or lacking in energy.

Tremors

Involuntary, rhythmic muscle movements causing shaking motions in one or more parts of the body.

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Drugs used to control anxiety and agitation.

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Movements that occur without conscious control, often as a result of neurological disorders.