Which of the following is generally the most costly form of serving a foreign market from a capital investment standpoint?
A) Joint venture
B) Licensing
C) Franchising
D) Wholly owned subsidiary
E) Exporting

Question

Quizplus · Accepted Answer

Wholly owned subsidiary involves the highest capital investment as the company sets up its own operations in the foreign market, acquires all the necessary resources, and takes full control of the operations. This can involve substantial resources and higher costs compared to other forms of market entry such as licensing, franchising, joint venture or exporting.

Which of the Following Is Generally the Most Costly Form