A firm wants to enter foreign markets to expand its business.However,it does not want to make significant investments before assessing foreign conditions.Which of the following strategies is best suited to enter a foreign market slowly and then design the firm's product offerings?
A) foreign direct investment
B) exporting
C) business merger
D) joint venture
E) franchising

Question

Quizplus · Accepted Answer

A)Exporting allows a firm to enter a foreign market gradually, assess local conditions, and then fine-tune its product offerings to meet the needs of local markets. In most cases, the firm's financial exposure is limited to the costs of researching the market, advertising, and either establishing a direct sales and distribution system or hiring intermediaries.
B)Exporting allows a firm to enter a foreign market gradually, assess local conditions, and then fine-tune its product offerings to meet the needs of local markets. In most cases, the firm's financial exposure is limited to the costs of researching the market, advertising, and either establishing a direct sales and distribution system or hiring intermediaries.
C)Exporting allows a firm to enter a foreign market gradually, assess local conditions, and then fine-tune its product offerings to meet the needs of local markets. In most cases, the firm's financial exposure is limited to the costs of researching the market, advertising, and either establishing a direct sales and distribution system or hiring intermediaries.
D)Exporting allows a firm to enter a foreign market gradually, assess local conditions, and then fine-tune its product offerings to meet the needs of local markets. In most cases, the firm's financial exposure is limited to the costs of researching the market, advertising, and either establishing a direct sales and distribution system or hiring intermediaries.
E)Exporting allows a firm to enter a foreign market gradually, assess local conditions, and then fine-tune its product offerings to meet the needs of local markets. In most cases, the firm's financial exposure is limited to the costs of researching the market, advertising, and either establishing a direct sales and distribution system or hiring intermediaries.

A Firm Wants to Enter Foreign Markets to Expand Its