In high-risk markets,firms can reduce their equity exposure by adopting low commitment modes such as:

Question

Quizplus · Accepted Answer

Licensing and contract manufacturing are low commitment modes of entry that allow firms to reduce their equity exposure and minimize their financial risk. Joint ventures with a majority share, on the other hand, require a greater level of commitment and investment from the firm. Therefore, the best choice for reducing equity exposure in high-risk markets would be licensing and contract manufacturing, as listed in option (E).

In High-Risk Markets,firms Can Reduce Their Equity Exposure by Adopting