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)conduct management contracting
B)initiate joint ownerships
C)make a direct investment
D)begin licensing
E)use direct exporting

Question

Quizplus · Accepted Answer

Direct investment would provide the company with the opportunity to take advantage of lower costs in the form of cheaper labor or raw materials, access foreign government investment incentives, save on freight costs and potentially improve their company image by showing commitment and investment in the foreign market. Management contracting, joint ownership, licensing, and direct exporting may not provide the same level of control or benefits as direct investment.

Lower Costs in the Form of Cheaper Labor or Raw