A company is planning to enter a foreign market. Which of the following entry strategies will give it…
Among foreign market entry modes—exporting, licensing, franchising, joint ventures, and wholly owned subsidiaries—'Direct investment' (Foreign Direct Investment in a wholly…
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A company is planning to enter a foreign market. Which of the following entry strategies will give it the maximum control ?
Answer and explanation
Correct answer B
Among foreign market entry modes—exporting, licensing, franchising, joint ventures, and wholly owned subsidiaries—'Direct investment' (Foreign Direct Investment in a wholly owned manufacturing or marketing subsidiary) requires the highest resource commitment and provides the multinational company with the maximum strategic and operational control over its foreign operations.
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UGC NET Commerce