Early Entrants Can Find Themselves at a Disadvantage If a Subsequent

question 65

True/False

Early entrants can find themselves at a disadvantage if a subsequent change in a foreign country's regulations invalidates prior assumptions about the best business model for operating in that country.
This is a serious risk in many developing nations where the rules that govern business practices are still evolving.

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Definitions:

Contagion Theory

A theory in social psychology that suggests ideas, attitudes, and behaviors spread through groups like diseases, influenced by the power of the crowd.

Convergence Theory

The idea that societies and cultures will grow more similar over time as they adopt and implement similar technologies and organizational structures.

Emergent Norm Theory

A sociological perspective that emphasizes the development of new norms to guide behavior in a crowd situation, often arising suddenly in response to an immediate situation.

Conflict Theory

Conflict theory is a sociological perspective that emphasizes the social, political, or material inequalities of a social group, critiquing the broader socio-political system.