Which of the following modes of entry into a foreign market involves the maximum commitment and risk?
A) franchising
B) direct investment
C) joint ventures
D) licensing
E) direct exporting

Question

Quizplus · Accepted Answer

Direct investment involves the highest level of commitment and risk as it requires the company to set up operations in the foreign market and make substantial investments in infrastructure, resources, and personnel. This option also involves greater control and potential for high profits, but also entails the highest risk of failure due to unfamiliarity with the local market and potential political, economic, and social risks.

Which of the Following Modes of Entry into a Foreign