Which of the following pairs of alternatives closely resemble each other in the amount of ownership, control and risk in international business?
A) Foreign direct investment / reselling
B) Wholly owned foreign affiliate / countertrade
C) Export / Import
D) Franchising / licensing
E) All of these

Question

Quizplus · Accepted Answer

Franchising and licensing both involve transferring ownership and control of intellectual property to a foreign entity without significant financial risk, making them similar in terms of ownership, control, and risk. Foreign direct investment and wholly owned foreign affiliates involve a greater level of financial risk and control, while reselling and countertrade involve a lower level of ownership and control. Exporting and importing also involve different levels of ownership and control, with exporting typically involving less risk and control than importing.

Which of the Following Pairs of Alternatives Closely Resemble Each