Final answer:
First-mover preemptive investments like cherry picking leading local suppliers and distributors help firms gain competitive advantage by securing critical resources or partnerships before competitors.
Step-by-step explanation:
First-mover preemptive investments refer to the strategic actions taken by a firm to establish a strong market position before competitors. Among the options listed, cherry picking leading local suppliers and distributors fits the description of a first-mover preemptive investment. This strategy involves securing the best partnerships to gain competitive advantage and can be a barrier for other firms to enter the market. On the other hand, avoiding scarce resources and waiting for market uncertainties to be resolved do not align with the proactive, market-leading approach of first-mover investments.
For example, a company might purchase exclusive rights to a scarce resource, such as radio frequencies, to prevent competitors from entering the market. Early-stage financial decisions, such as when to conduct an initial public offering (IPO), are critical for start-up firms, especially when they require capital for growth but may not yet be able to demonstrate significant profits to investors.