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Question
Which of the following is true of the basic entry decisions a firm must make before a firm contemplates foreign expansion?
A. The long-run economic benefits of doing business in a country are solely a function of the number of consumers in the market.
B. 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.
C. The costs and risks associated with doing business in a foreign country are typically higher in economically advanced and politically stable democratic nations.
D. The benefitcostrisk trade-off is likely to be most favorable in politically unstable countries.
E. All the nation-states in the world hold the same profit potential for a firm contemplating foreign expansion.
Answer
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