Which of the following foreign market entry strategies requires the most substantial resource commitment on the part of the focal firm?
A) global sourcing
B) licensing
C) franchising
D) majority-owned equity joint venture

Question

Quizplus · Accepted Answer

Majority-owned equity joint venture requires the most substantial resource commitment on the part of the focal firm as it involves setting up a new business entity with a local partner and sharing ownership, control, and profits. This strategy requires a significant investment of time, money, and human resources to establish the business and manage the relationship with the partner. Global sourcing, licensing, and franchising, on the other hand, involve less resource commitment as they primarily involve outsourcing, granting rights to use intellectual property, or replicating a business model in a new market.

Which of the Following Foreign Market Entry Strategies Requires the Most