Which of the following is an example of an equity entry mode?

Question

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An equity entry mode refers to a situation where a company makes a direct investment in a foreign country, typically by establishing a subsidiary or acquiring an existing company. Acquisition is an example of an equity entry mode as it involves purchasing a controlling stake in a foreign company, which gives the acquiring company full ownership and control over the target firm's operations. Contractual agreements, indirect exports, and comarketing are not examples of equity entry modes as they do not involve direct investment in a foreign country.

Which of the Following Is an Example of an Equity