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

question 13

Multiple Choice

Which of the following is a disadvantage of large-scale entry into a foreign market?

• A)decrease in a firm's exposure to the foreign market
• B)difficulty attracting customers and distributors for the product
• C)inability to build rapid market-share irrespective of the scale of entry
• D)limited product acceptance due to the avoidance of potential losses
• E)availability of fewer resources to support expansion in other desirable markets

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Definitions:

Total Market

The entirety of the demand and supply for a particular good or service across all its potential markets.

Monopolistically Competitive

A market structure where many firms sell products that are similar but not identical, allowing for some degree of market power and product differentiation.

Oligopolistic

Pertaining to a market structure characterized by a small number of firms controlling the majority of the market share, often leading to coordinated or interdependent market behavior.

Market Size

The total volume of sales or potential sales for a product or service within a particular market.