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 the 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, unlike joint ventures where control is shared. Direct investment may have higher costs and risks compared to other modes of international expansion, but it also has the potential for higher returns and allows the firm to diversify its operations in a foreign market.

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