What does the term 'scale of entry' pertain to in international business?

The term 'scale of entry' in international business primarily refers to the financial resources committed to entering a foreign market. A company's entry strategy is heavily influenced by how much capital it is willing to invest. This includes considerations such as the establishment of facilities, marketing expenditures, supply chain logistics, and hiring practices. A larger scale of entry might suggest substantial investment, which can improve the likelihood of establishing a strong market presence, while a smaller scale may limit the company's impact and ability to compete effectively.

While the number of employees hired, the volume of production planned, and the speed of market entry are relevant to a company's operational strategy, they do not capture the essence of 'scale of entry.' These factors are often influenced by the scale of entry but do not define it directly. The focus on financial commitment provides a clearer insight into the strategic considerations a company must confront when expanding internationally.