A USbased retail store chain plans to expand its market into Asian countries. The nature of its work requires the support of local political systems, and it invests heavily on understanding the local cultures in its prospective markets. It should enter the market:
A) by forming joint ventures with domestic partners.
B) by engaging in foreign direct investment.
C) by importing and exporting information.
D) by outsourcing its work.

Question

​A US­based retail store chain plans to expand its market into Asian countries. The nature of its work requires the support of local political systems, and it invests heavily on understanding the local cultures in its prospective markets. It should enter the market:
A) ​by forming joint ventures with domestic partners.
B) ​by engaging in foreign direct investment.
C) ​by importing and exporting information.
D) ​by outsourcing its work.

Quizplus · Accepted Answer

Forming joint ventures with domestic partners allows the US-based retail store chain to gain support and understanding of the local political systems and cultures in its prospective markets. This approach also helps to minimize risk and increase profitability as it allows the company to leverage the resources and expertise of the domestic partners, while still maintaining control over the business.

​A US­based Retail Store Chain Plans to Expand Its Market

A USbased Retail Store Chain Plans to Expand Its Market