The Write Pens, Inc. wants to reduce transferring costs by producing closer to the consumer in a foreign country. This will also help in reducing transportation and storage costs. Which strategy would be the best to use given the circumstances?
A) Franchising
B) Exporting
C) Direct investing
D) Barter agreement
E) Licensing

Question

Quizplus · Accepted Answer

Direct investing involves establishing operations in a foreign country, which would allow The Write Pens, Inc. to produce closer to the consumer and reduce transportation and storage costs. This strategy also provides more control over the production and distribution process compared to other strategies like franchising or licensing. Exporting is not a viable option since it involves transporting goods from one country to another, which would not help in reducing transportation costs. Barter agreement is not a strategy suitable for the situation described.