Final answer:
c. the creation and consumption of services cannot be separated.
Consumer services firms choose modes like licensing, franchising, or direct investment due to the nature of services which cannot be inventoried or tangibly valued.
Barriers to entry can be governmental, like patents and regulation, or non-governmental, like brand reputation and economies of scale. These barriers affect how new competitors can enter the market.
Step-by-step explanation:
For most consumer services firms, the mode of entry into a foreign market can be through licensing, franchising, strategic alliances, or direct investment, which typically assumes some managerial responsibility.
This mode of entry is often preferred because services produced cannot be added to inventory (b.), the creation and consumption of services cannot be separated (c.),
and services usually do not have any intrinsic value that can be converted into a tangible form (e.).
Barriers to entry are realities in the marketplace that can prevent new competitors from easily entering an industry or area of business.
These can be government-enforced barriers such as a patented invention (a.) or laws limiting taxicab licenses (2a.), or non-governmental barriers like a well-respected brand name (1e.) or a well-known trademark (2c.).
Additionally, monopolies often exist due to the lack of competition, generally aided by barriers to entry. These barriers can be as simple as the cost of entering the market or as complex and insurmountable as owning all available radio frequencies.
A barrier such as an industry with very large economies of scale compared to the size of demand (1e., 2e.) can also prevent new entrants, as the established businesses can operate at a much lower cost due to their scale, hindering the competitiveness of new firms.