Asked by Molly Walsh on May 10, 2024
Verified
When entering a foreign market, the least risky strategy is
A) franchising.
B) exporting.
C) joint venture.
D) direct investment.
E) strategic alliance.
Least Risky Strategy
describes the approach or plan of action that exposes an entity to the minimal amount of risk or potential for loss.
- Discern and critique a variety of global market entry strategies, evaluating them based on the level of risk and control involved.
Verified Answer
JB
Jordan BlackMay 16, 2024
Final Answer :
B
Explanation :
Exporting is the least risky strategy as it involves selling goods or services to a foreign market without any direct investment or involvement in the foreign market. This allows the company to test the market and gain experience before committing to more costly and complex entry strategies such as direct investment or joint venture.
Learning Objectives
- Discern and critique a variety of global market entry strategies, evaluating them based on the level of risk and control involved.