IBM C6

The choice of which markets to enter should be driven by an assessment of relative long-run growth and profit potential.

• True

• False

The attractiveness of a country as a potential market for an international business depends on balancing the benefits, costs, and risks associated with doing business in that country.

• True

• False

The costs and risks associated with doing business in a foreign country are typically high in an economically advanced and politically stable democratic nation.

• True

• False

The value an international business creates in a foreign market depends on the suitability of its product offering to that market and the nature of indigenous competition.

• True

• False

First-mover advantages are the advantages associated with entering a market early.

• True

• False

Costs that an early entrant has to bear that a later entrant can avoid are known as first-mover costs.

• True

• False

Educating customers is a part of pioneering costs.

• True

• False

A strategic commitment can be reversed by the top management according to their convenience.

• True

• False

Large strategic commitments increase strategic flexibility.

• True

• False

A small-scale entrant is more likely than a large-scale entrant to capture first-mover advantages associated with demand preemption, scale economies, and switching costs.

• True

• False