Which of the following is a disadvantage of small-scale entry for an international firm considering foreign expansion?
A. possibility of escalating commitment leading to major financial losses
B. limited availability of resources for use in other markets
C. lack of flexibility associated with strategic commitments
D. increase in economic exposure due to minimal time spent in evaluating a foreign market
E. difficulty of building market share and capturing first-mover advantages
Answer: E. difficulty of building market share and capturing first-mover advantages