Which of the following involves the greatest commitment of resources and poses the greatest amount of risk?
A) Global sourcing
B) Exporting and importing
C) Licensing
D) Franchising
E) Foreign subsidiary

Question

Quizplus · Accepted Answer

A foreign subsidiary involves the greatest commitment of resources as it requires setting up a new business entity in a foreign country. It also poses the greatest amount of risk as the company has to navigate the laws, regulations, and cultural differences of a new market. Global sourcing, exporting and importing, licensing, and franchising all involve fewer resources and risks in comparison.

Which of the Following Involves the Greatest Commitment of Resources