One Disadvantage of Direct Investment When Entering a New Global

question 4

Multiple Choice

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

• 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:

Homo Sapiens

The scientific name for modern human beings, characterized by a capacity for language, social structure, and tool use.

Genus Homo

A category in biological taxonomy that includes humans and our closest extinct relatives.

Animal Lineages

The categorization and hierarchical arrangement of various animals based on their evolutionary relationships and characteristics.

Cambrian

A geological period approximately 541 million years ago, marked by a rapid diversification of life forms and the appearance of many of the major groups of organisms.