One Disadvantage of Direct Investment When Entering a New Global

Multiple Choice

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

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