A domestic corporation considering international expansion for the first time typically will follow which of these paths?
A) It will start by implementing a wholly owned foreign subsidiary.
B) It will implement a low-risk, low-control strategy such as exporting.
C) It will license or franchise its operations.
D) It will form a joint venture with a reputable foreign producer.

Question

Quizplus · Accepted Answer

Exporting consists of producing goods in one country to sell in another. This entry strategy enables a firm to invest the least amount of resources in terms of its product, its organization, and its overall corporate strategy. Multinationals often stumble onto a stepwise strategy for penetrating markets, beginning with the exporting of products.

A Domestic Corporation Considering International Expansion for the First Time