In international business, an early entrant to a foreign market may be

QUESTION

In international business, an early entrant to a foreign market may be at a disadvantage relative to a later entrant, if regulations change in a way that diminishes the value of an early entrant’s investments.

Indicate whether the statement is true or false.

ANSWER

TRUE
In international business, an early entrant to a foreign market may be put at a severe disadvantage, relative to a later entrant, if regulations change in a way that diminishes the value of an early entrant’s investments. This is a serious risk in many developing nations where the rules that govern business practices are still evolving.