28. Which of the following is the most likely outcome of a foreign firm entering
ID: 465735 • Letter: 2
Question
28. Which of the following is the most likely outcome of a foreign firm entering a developed nation on a small scale after other international businesses in the firm's industry?
A. Capturing first-mover advantages
B. Higher pioneering costs
C. Rapid increase in market share
D. Limited future growth potential
E. Increase in sales volume
29. Which of the following entry modes into a foreign market best serves a high-tech firm?
A. Turnkey projects
B. Franchising
C. Wholly owned subsidiaries
D. Joint ventures
E. Exporting
Explanation / Answer
28. Option (D) -It will be associated with much lower levels of risk. However, the potential long-term rewards are also likely to be lower because the firm is essentially forgoing the opportunity to capture first-mover advantages and because the lack of commitment signaled by small-scale entry may limit its future growth potential.
29. Option(E) - For hitech – firms exporting is the well suited foreign entry mode, as for technology, exporting is the least risky while licensing is generally the most risky.