Most manufacturing companies begin their global expansion by:
A) licensing.
B) franchising.
C) exporting.
D) forming a joint venture.
E) setting up a wholly owned subsidiary in the host country.

Question

Quizplus · Accepted Answer

Exporting is usually the first step for a manufacturing company to expand globally as it allows the company to test the waters in a new market without making a significant investment. By exporting, the company can also gather information about the market, develop relationships with local customers, and establish distribution channels, which will be helpful for the company when it enters the market through other modes of entry such as licensing, franchising or forming a joint venture, or setting up a wholly-owned subsidiary.

Most Manufacturing Companies Begin Their Global Expansion By