Which of the following strategies for competing in the global markets involves the lowest risk and offers the lowest profit potential?
A)A joint venture
B)A foreign subsidiary
C)Contract manufacturing
D)Licensing

Question

Quizplus · Accepted Answer

Licensing involves the lowest risk as it involves allowing another company to use your intellectual property (patents, trademarks, etc.) in exchange for royalties or fees. This strategy does not require significant investment or operational involvement in the foreign market, but it also offers the lowest profit potential.

Which of the Following Strategies for Competing in the Global