An international company is most likely to develop foreign subsidiaries __________.
A) before it develops franchising agreements
B) after it establishes strategic alliances
C) before it develops licensing agreements
D) before it begins importing and exporting

Question

Quizplus · Accepted Answer

Developing foreign subsidiaries typically involves a higher level of investment and commitment compared to licensing or franchising agreements. Therefore, it is likely that a company would establish strategic alliances or other forms of market entry before committing to developing foreign subsidiaries. Additionally, developing subsidiaries may involve importing and exporting activities, but it is not typically the first step in the internationalization process.

An International Company Is Most Likely to Develop Foreign Subsidiaries