Management contracting is a relatively low risk way of entering foreign markets, since no commitment is made to fixed facilities.

Question

Quizplus · Accepted Answer

Management contracting typically involves providing management expertise and services to a foreign company, without committing to building or owning fixed facilities. This approach is generally considered to be lower risk than other market entry modes that involve significant capital investment, such as direct investment or joint ventures.

Management Contracting Is a Relatively Low Risk Way of Entering