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:

Empower Subordinates

To give authority or power to lower-level employees or team members, enabling them to take initiative and make decisions.

Relevant Skills

Refers to the abilities and expertise that directly relate to the performance of specific tasks or the proficiency in a given area.

Derail

To go off course or fail to achieve intended goals, often due to unexpected problems or obstacles.

Cooperative Relationships

Partnerships or interactions between individuals or groups characterized by mutual assistance and joint efforts towards common objectives.