Which of the following entry modes do most manufacturing companies use to begin global expansion?
A)exporting
B)wholly owned subsidiaries
C)franchising
D)licensing
E)joint ventures

Question

Quizplus · Accepted Answer

Most manufacturing companies use exporting as their initial entry mode to begin global expansion. This is because exporting allows companies to test the waters in a foreign market without having to establish a physical presence there. It is also a relatively low-risk entry mode as it does not require a significant investment. As the company's presence and demand in the foreign market grow, they can then consider other entry modes such as establishing wholly owned subsidiaries or joint ventures.

Which of the Following Entry Modes Do Most Manufacturing Companies