Which method of entering the global marketplace would be most risky?
A) licensing
B) direct investment
C) contract manufacturing
D) joint ventures
E) exporting

Question

Quizplus · Accepted Answer

Direct investment involves significant financial commitment, ownership of assets, and potential exposure to political risks in the foreign country. This method can be the most risky as it puts the company's resources and reputation at stake with no guarantee of success. The other options provide lower levels of commitment and risk, such as exporting, where the company only ships products to foreign markets or licensing, where the company grants the rights to use its products, technology, or intellectual property to other companies. Contract manufacturing and joint ventures involve partnerships with other companies, which may share the risks, costs, and benefits of entering foreign markets.

Which Method of Entering the Global Marketplace Would Be Most