_____ are the most basic non-equity mode of entry,capitalizing on economies of scale in production concentrated in the home country and providing better control over distribution.
A) Indirect exports
B) Direct exports
C) Turnkey projects
D) Acquisitions

Question

_____ are the most basic non-equity mode of entry,capitalizing on economies of scale in production concentrated in the home country and providing better control over distribution.
A) Indirect exports 
B) Direct exports 
C) Turnkey projects 
D) Acquisitions

Quizplus · Accepted Answer

Direct exports involve selling products produced in the home country to customers in another country, without any intermediaries. This mode of entry capitalizes on economies of scale and provides better control over distribution as the company can directly manage its sales channels.  Indirect exports typically involve selling goods to an intermediary in the home country, who then sells the goods in another country, while turnkey projects and acquisitions are equity modes of entry.

_____ Are the Most Basic Non-Equity Mode of Entry,capitalizing on Economies