Octa Autos Inc.wants to globally expand its market.It intends to ensure that its mode of foreign entry allows it to have strong control over its operations and protect its intellectual property, though it may mean investing a significant amount of capital and other resources.In this scenario, which of the following foreign entry modes would best suit Octa Autos Inc.?
A) Exporting
B) Franchise agreement
C) Acquisition
D) Licensing

Question

Quizplus · Accepted Answer

Acquisition is the foreign entry mode that would best suit Octa Autos Inc. Greenfield operations and acquisitions are foreign entry modes that require a high level of investment in terms of capital and other resources, but also allow for a high level of control.