To enter foreign markets, most firms begin with which strategy?
A) Exporting
B) Greenfield venture
C) Joint venture
D) Acquisition
E) Direct investment

Question

Quizplus · Accepted Answer

Exporting is the least risky and the most common market entry strategy used by firms to enter foreign markets. This strategy allows the firm to test the waters of the foreign market without incurring much investment cost. Once the firm becomes familiar with the foreign market and gains experience in exporting, it can then consider other strategies such as joint ventures, acquisitions, or direct investment. Greenfield ventures, on the other hand, involve significant investment and are riskier, while joint ventures and acquisitions require more commitment and knowledge of the foreign market compared to exporting. Direct investment is also a viable option if the firm is financially capable and committed to the foreign market, but it involves a higher level of risk and commitment compared to exporting.

To Enter Foreign Markets, Most Firms Begin with Which Strategy