By identifying and investing early in a potential future economic star, international firms can build brand loyalty and gain experience in that country's business practices. a. True b. False

The statement is a. True. Identifying and investing early in a potential future economic star can provide international firms with several advantages:

1. Brand Loyalty: By establishing a presence in a country early on, a company can build brand awareness and loyalty among consumers. This early investment can contribute to a strong market position as the economy grows.
2. Experience in Business Practices: Investing early allows firms to gain valuable experience in the local business practices, regulations, and cultural nuances. This experience can be crucial for adapting to the specific challenges and opportunities of the market.
3. First-Mover Advantage: Being an early entrant into a growing economy can provide a first-mover advantage. This advantage includes the ability to capture market share, establish distribution networks, and shape consumer preferences before competitors enter the market.
4. Relationship Building: Early investments enable companies to build relationships with local partners, suppliers, and government entities. Establishing strong relationships can be beneficial for navigating the business environment and addressing potential challenges.
5. Strategic Positioning: Investing in a potential economic star early demonstrates a long-term commitment to the market. This strategic positioning can enhance the company's reputation and influence in the region.