Which of the Following Is a Disadvantage of Small-Scale Entry

question 22

Multiple Choice

Which of the following is a disadvantage of small-scale entry for an international firm considering foreign expansion?

• A)possibility of escalating commitment leading to major financial losses
• B)limited availability of resources for use in other markets
• C)lack of flexibility associated with strategic commitments
• D)increase in economic exposure due to minimal time spent in evaluating a foreign market
• E)difficulty of building market share and capturing first-mover advantages

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Definitions:

Theory Of Reasoned Action

Fishbein and Ajzen’s theory of the relationship between attitudes and behaviour. A specific attitude that has normative support predicts an intention to act, which then predicts actual behaviour.

Person's Behaviour

The actions or reactions of an individual in response to external or internal stimuli.

Intentions To Act

The motivational factors that influence an individual's decision to engage in a particular behavior, strongly predicting the likelihood of performing the behavior.

Multiple-Act Criterion

A method in psychology used to judge behavior across different situations for a more comprehensive assessment of traits or tendencies.