Which entry strategy is regarded as the first step in foreign direct investment (FDI)?

Question

Quizplus · Accepted Answer

Exporting is typically regarded as the first step in FDI as it involves selling products in a foreign market without significant investment or involvement in the market. This helps companies to test the waters and gather information on the market before considering more significant investments in the form of FDI. Joint ventures, franchising, and contract manufacturing are all more involved entry strategies that require greater investment and integration into the foreign market.

Which Entry Strategy Is Regarded as the First Step in Foreign