The highest cost/highest risk form of global business is __________.
A)franchising
B)direct investment
C)contracting
D)global sourcing

Question

Quizplus · Accepted Answer

Direct investment involves establishing operations, such as a subsidiary or joint venture, in a foreign market. This requires a significant financial commitment and carries a high level of risk due to factors such as political instability, cultural differences, and changes in regulations. Franchising and contracting involve less financial commitment and lower risk as they rely on established business models and relationships with partners. Global sourcing involves purchasing goods or services from suppliers in other countries and while it carries some risk, it generally involves lower levels of financial commitment and risk compared to direct investment.

The Highest Cost/highest Risk Form of Global Business Is __________