Question

A firm's profit potential and control over marketing activities ________ as it moves from exporting to direct investment as a global market entry strategy.

Answer 1

The correct answer is letter "B": increases.

Step-by-step explanation:

Foreign Direct Investment or FDI is a form of cross-border investment with the goal of identifying a lasting interest in a business operating in another country. Lasting interest means that the management of the business has a huge effect as well as a long-term connection with the direct investment company.

Thus, while it might represent more responsibility and investment for a firm FDI allows a company a potential opportunity to increase profits and control over the marketing of its product in different regions worldwide.

Answer 2

increase

Step-by-step explanation:

When a company simply exports to another country through a foreign trade company that acts as a wholesaler, it cannot control what the other company does. When it engages in foreign direct investment, it will start their own operations in that foreign country which will result in higher control simply because the company itself will carry out the marketing activities, not the another company.