Which of the following arrangements involves the greatest commitment of resources and poses the greatest amount of risk?
A) exporting
B) franchising
C) foreign subsidiary
D) global sourcing

Question

Quizplus · Accepted Answer

A foreign subsidiary involves establishing a new business entity in a foreign country, which requires a significant level of commitment of resources and poses a high amount of risk due to factors such as cultural differences, legal regulations, and economic conditions. Exporting, franchising, and global sourcing typically involve less commitment of resources and lower levels of risk compared to establishing a foreign subsidiary.

Which of the Following Arrangements Involves the Greatest Commitment of Resources