Once a company makes a long-term commitment to a foreign market that has a promising political and economic environment, which of the following options then emerges as a possibility?
A) Exporting
B) Joint venture
C) Limited exporting
D) Direct ownership
E) Licensing

Question

Quizplus · Accepted Answer

When a company makes a long-term commitment to a foreign market with a promising political and economic environment, direct ownership becomes a possibility. This involves establishing a wholly-owned subsidiary or acquiring an existing company in the foreign market. Direct ownership provides the company with complete control over its operations, including marketing, production, and distribution, and allows it to tailor its operations to the specific needs and preferences of the foreign market. This option also provides the highest degree of risk but potentially the highest return on investment. Exporting, limited exporting, licensing, and joint ventures do not involve the same level of long-term commitment as direct ownership.

Once a Company Makes a Long-Term Commitment to a Foreign