Which of the following is the most likely advantage of using foreign acquisitions or greenfield plants as a foreign entry mode?
A) They are easy to initiate and terminate.
B) They require low amounts of investments in terms of capital.
C) They reduce a firm's exposure to loss of reputation.
D) They are based on contracts rather than ownership.

Question

Quizplus · Accepted Answer

Foreign entry modes with a high level of control such as foreign acquisitions or greenfield plants reduce the firm's exposure to two particular downsides of global business: loss of reputation and loss of intellectual property.

Which of the Following Is the Most Likely Advantage of Using