Which of the following best explains why some service industry firms most likely enter foreign markets through FDI?
A) The market abroad is saturated; therefore, the other entry strategies are most likely to fail.
B) The service of the firm requires tough intellectual property laws.
C) The service offered by the firm requires direct contact with customers.
D) The firm's service is not successful domestically, so globalization is required.

Question

Quizplus · Accepted Answer

The service industry often requires direct interaction with customers to effectively meet their needs and ensure satisfaction. This is particularly true for services that are personalized or require customization based on local preferences and behaviors. Foreign Direct Investment (FDI) allows service industry firms to establish a physical presence in the foreign market, facilitating direct contact with customers and enabling them to better adapt and respond to local demands.

Which of the Following Best Explains Why Some Service Industry