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. This is a serious risk in many developing nations where the rules that govern businesspractices are still evolving. A. TrueB. False

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Business

3 August, 04:23

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. This is a serious risk in many developing nations where the rules that govern businesspractices are still evolving. A. TrueB. False

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Cristian Clayton · Answer 1

TRUE

Explanation:

It is true that 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.

This is a serious risk in many developing nations where the rules that govern business practices are still evolving.

One of the disadvantages of first movers include the risk of evolving business practices, of products being copied or improved upon by the competition, when later movers enter the industry.

First movers suffer all the uncertainties of trial and error in the industry while the later movers enjoy the perfection and establishment of the industry practices, thereafter.