In the context of the strategies for reaching global markets, which of the following statements is true of direct investment?
A) The cost involved in direct investment is high.
B) It is the most basic level of international market development.
C) It represents an especially strong opportunity for small firms.
D) Foreign franchising is a type of direct investment.

Question

Quizplus · Accepted Answer

Direct investment involves significant financial commitment as it requires establishing or acquiring business operations in a foreign country, making it costly.

In the Context of the Strategies for Reaching Global Markets