NCD Company wants to expand into the Mexican market.It has the financial resources,wants to control business operations,and has had considerable success marketing to Hispanics in the United States.NCD will likely use __________ to expand into the Mexican market.

Question

Quizplus · Accepted Answer

Direct investment is the most appropriate choice in this scenario because NCD has the financial resources and wants to control business operations. This involves setting up a wholly owned subsidiary in Mexico and running the business directly. Franchising involves giving control of the business operations to a local franchisee, while exporting would require NCD to manufacture and distribute its products from the US. A joint venture and strategic alliance involve sharing ownership and control with a local partner, which may not be aligned with NCD's objective of controlling business operations.

NCD Company Wants to Expand into the Mexican Market