Which of the following is TRUE about cross-border contractual relationships?
A) It is a more visible strategy than FDI and draws a lot of criticism from the local market.
B) They are more susceptible to volatility and risk compared to FDI.
C) They attract less attention and less of the criticism sometimes directed at firms that enter through more visible strategies such as FDI.
D) Focal firms use contractual relationships as an advanced entry strategy in foreign markets.

Question

Quizplus · Accepted Answer

Cross-border contractual relationships, such as licensing or franchising, often attract less attention and criticism compared to more visible strategies like Foreign Direct Investment (FDI), which can be seen as more intrusive by local markets.

Which of the Following Is TRUE About Cross-Border Contractual Relationships