The European Expansion (Scenario)
As a manager at a growing Canadian company, Samantha has been asked to develop a strategy to expand the company's operations into the European market. Although the company president has provided some basic guidelines about acceptable levels of risk and investment, there are still many factors in the legal-political, economic, and cultural environments that Samantha must take into consideration in her proposal.
-Samantha will also recommend forming a strategic alliance with a Swiss-based company that promises to market her company's products in several EU countries in exchange for access to her company's distribution network in Canada and the U.S.This strategy will require less investment than ________.
A)exporting
B)franchising
C)establishing a joint venture
D)establishing a subsidiary

Question

Quizplus · Accepted Answer

Establishing a subsidiary typically requires a significant investment in the local market, including setting up operations, hiring staff, and complying with local regulations, which is generally more costly than forming a strategic alliance.