One disadvantage of direct investment when entering a new global market is that

A. the financial commitments involved.
B. intermediaries have the potential to harm the brand.
C. the company forgoes control over its product.
D. this method is likely to provide the fewest cost savings relative to the other global market-entry options.
E. the firm entering the foreign market must pay royalties to the government.


Answer: A

Business

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What will be an ideal response?

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A company earned $3,000 in net income for October. Its net sales for October were $10,000. Its profit margin is:

A. 33.3% B. 3%. C. 33%. D. 30%. E. 333%.

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Indicate whether the statement is true or false

Business