Which of the following entry modes do most manufacturing companies use to begin global expansion?
A)Exporting
B)Wholly owned subsidiaries
C)Franchising
D)Licensing
E)Joint ventures

Question

Quizplus · Accepted Answer

Most manufacturing companies begin global expansion as exporters and later switch to one of the other modes for serving an overseas market. The advantages of exporting are that it: (1) provides scale economies by avoiding the costs of manufacturing in other countries and (2) is consistent with a pure global strategy.

Which of the Following Entry Modes Do Most Manufacturing Companies