Assume that an American firm wants to engage in international business without major investment in the foreign country. Which method is least appropriate in this situation?
A) International Trade
B) Licensing
C) Franchising
D) Direct foreign investment

Question

Quizplus · Accepted Answer

Direct foreign investment involves major investment in a foreign country, which is not appropriate for a business that wants to engage in international business without major investment. The other options, international trade, licensing, and franchising, are all appropriate methods for such a business. International trade allows the firm to engage in importing and exporting without investing in a foreign country, licensing involves granting permission to another company to use the firm's intellectual property or technology, and franchising involves giving another party the right to use the firm's business model and brand in exchange for fees and royalties.

Assume That an American Firm Wants to Engage in International