Busıness Fınance Iı Deneme Sınavı Sorusu #1115626

Which of the following is the most popular low-risk entry strategy to international operations?


fully owned subsidiaries 

international joint venture

exporting

franschising

licensing


Yanıt Açıklaması:

Exporting: It is the most popular low-risk entry strategy as it involves little investment and exit is unproblematic. It is a fact that for the firms with insufficient resources for other types of internationalization strategies, exporting is the only way to reach to foreign consumers. However, success is entirely dependent on being able to identify efficient and reliable distribution channels. Other critical factors are import tariffs and quotas as well as freight costs. The correct answer is C.

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