Importing and exporting is the lowest-risk way to take a business global,whereas direct investment is the highest-risk way to take a business global.

Question

Quizplus · Accepted Answer

Importing and exporting involve less investment and commitment than direct investment, hence it is considered as the lowest-risk way to take a business global. Importing and exporting activities can be done by using agents, distributors, or online marketplaces which can help a business to establish a foothold in foreign markets without incurring high costs. On the other hand, direct investment requires a significant amount of financial and managerial resources, and involves risks like political instability, regulatory changes, and currency fluctuations. Hence, it is considered as the highest-risk way to take a business global.

Importing and Exporting Is the Lowest-Risk Way to Take a Business