Which of the following is true about direct investment as a mode of international expansion?
A) It allows a firm to retain full control over its investment.
B) It yields lower returns than joint ventures.
C) It involves the least amount of risk.
D) It involves the least cost.
E) It does not allow the firm to diversify.

Question

Quizplus · Accepted Answer

Direct investment allows a firm to retain full control over its investment, making it a desirable mode of international expansion for firms that want to maintain control over their operations in foreign markets. It may involve higher risk and cost compared to other modes such as exporting, licensing or franchising, but it also offers the potential for higher returns and long-term growth.

Which of the Following Is True About Direct Investment as a Mode