Identify a true statement about the non-equity approaches of entering the international market.
A) They include joint ventures, mergers and acquisitions, and direct investment.
B) They demand extensive assistance from the HR department of the home country.
C) They present more financial risk to companies than equity approaches.
D) They provide businesses a low-cost entry into new, global markets.

Question

Quizplus · Accepted Answer

Non-equity approaches, such as exporting, licensing, and franchising, offer businesses a way to enter international markets with lower upfront investment and risk compared to equity methods like joint ventures and direct investment, making them a cost-effective strategy for global expansion.

Identify a True Statement About the Non-Equity Approaches of Entering