There Are Many Reasons Why a Company Might Prefer to Be

question 37

Multiple Choice

There are many reasons why a company might prefer to be a follower in a new market, not a first entrant. Which of these is NOT one of those reasons?

• A) reduced profits because the market is already gone
• B) fewer pitfalls as the follower can see the mistakes of the first-mover
• C) better developed marketing channels
• D) competitive response from other MNCs and local competitors
• E) none of the above

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Definitions:

Spider Bite

A puncture wound produced by a spider that can introduce venom, sometimes causing reactions ranging from mild irritation to severe symptoms.

Ice

Frozen water, a solid state of H2O, typically formed in cold temperatures.

Swelling

An abnormal enlargement of a body part or area due to fluid accumulation or inflammation.

Incomplete Fractures

A type of bone fracture where the bone cracks but does not break all the way through.