Lower costs in the form of cheaper labor or raw materials,foreign government investment incentives,freight savings,and the opportunity to improve the company image are all factors that would likely lead a company to ________ in a foreign market.
A) use direct exporting
B) begin licensing
C) conduct management contracting
D) initiate joint ownerships
E) make a direct investment

Question

Quizplus · Accepted Answer

Lower costs in the form of cheaper labor or raw materials, foreign government investment incentives, freight savings, and the opportunity to improve company image are all factors that make it beneficial for a company to make a direct investment in a foreign market. Direct investment allows the company to have more control over its operations, access to local resources, and potentially higher profits. This option also requires a greater level of commitment and greater risk than the other options.

Lower Costs in the Form of Cheaper Labor or Raw