The least risky method by which firms conduct international business is:
A) franchising.
B) acquisitions of existing operations.
C) international trade.
D) the establishment of new subsidiaries.
E) licensing.

Question

Quizplus · Accepted Answer

International trade is the least risky method of conducting international business because it involves simply exporting goods or services to another country without committing significant resources or making long-term commitments. This method allows firms to test the waters in a foreign market without the financial investment required for other methods such as establishing subsidiaries or making acquisitions.

The Least Risky Method by Which Firms Conduct International Business