Which of the following entry strategies is most likely to serve as a short-term strategy and to provide limited income?
A)joint venture
B)management contract
C)offshoring
D)fully owned subsidiary

Question

Quizplus · Accepted Answer

A management contract involves a company providing management services to a foreign business, but not owning equity or assets. This strategy is usually short term and provides limited income, as it does not involve full ownership or a long-term investment. Joint ventures and fully owned subsidiaries, on the other hand, often require significant investment and are long-term strategies that aim to bring substantial returns. Offshoring refers to the relocation of business processes to a foreign country and does not necessarily involve a direct entry strategy.

Which of the Following Entry Strategies Is Most Likely to Serve