In the context of the modes of entering a foreign market, which of the following statements is true of equity modes?
A) They include the entry modes of exporting.
B) They require small investments.
C) They prevent firms from getting close to customers.
D) They include joint ventures.

Question

Quizplus · Accepted Answer

Equity modes of entering a foreign market involve significant investment and include forms such as establishing wholly owned subsidiaries or entering into joint ventures with local firms. This allows firms to have a direct investment in the foreign country, offering greater control over operations and closer proximity to customers.

In the Context of the Modes of Entering a Foreign