The least risky method by which firms conduct international business is:
A) Franchising.
B) The acquisitions of existing operations.
C) International Trade.
D) The establishment of new subsidiaries.
E) Licensing

Question

Quizplus · Accepted Answer

International trade is the least risky method of conducting international business because it involves exporting and importing goods or services without investing a significant amount of resources in establishing a new subsidiary or acquiring an existing operation. It also allows firms to test the waters in new markets before making larger investments. Franchising, acquisitions, establishing new subsidiaries, and licensing involve more significant investments, risks, and complexities.

The Least Risky Method by Which Firms Conduct International Business