Which of the following is True about direct investment as a mode of international expansion?
A) It allows a firm to retain full control over its investment.
B) It yields the lower returns than joint ventures.
C) It involves the least amount of risk.
D) It involves the least cost.
E) It does not allow the firm to diversify.

Question

Quizplus · Accepted Answer

Direct investment allows a firm to retain full control over its investment. Joint ventures, on the other hand, involve shared control and decision-making. Direct investment can have higher risk and cost compared to other modes of international expansion, but it also offers the potential for higher returns and greater diversification opportunities.

Which of the Following Is True About Direct Investment as a Mode