Firms adopting this mode of entry into a foreign market must bear the full capital costs and risks of setting up overseas operations.
A)Joint ventures
B)Licensing
C)Franchising
D)Wholly owned subsidiary

Question

Quizplus · Accepted Answer

Establishing a wholly owned subsidiary is generally the most costly method of serving a foreign market from a capital investment standpoint.Firms doing this must bear the full capital costs and risks of setting up overseas operations.

Firms Adopting This Mode of Entry into a Foreign Market