Disadvantages of ownership in a foreign market include all of the following except: Loss of flexibility because the firm has a long-term commitment to the foreign market. The possibility of government nationalization of foreign-owned businesses. Exchange rate fluctuations can change the relative value of foreign investments. Firms cannot compete effectively with competitors who use other methods of market entry, such as exporting and joint ventures. All financial risks are borne by the firm that utilizes ownership in the foreign market