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 would allow NCD to have full control over its business operations in Mexico, which is in line with its desire to control operations. It also has the financial resources to do so. Franchising would involve sharing control with franchisees, while exporting and strategic alliances do not provide the level of control desired by NCD. A joint venture could be an option, however, it may be difficult to find a suitable partner, and NCD may not have the same level of control as a direct investment.

NCD Company Wants to Expand into the Mexican Market