Which of the following entry mode does not involve equity investment?
A) Licensing
B) Joint venture
C) Greenfield investment
D) Acquisition

Question

Quizplus · Accepted Answer

Licensing does not involve equity investment as it allows the company to grant rights to use its intellectual property to a foreign company in exchange for royalties or fees. Joint venture involves forming a new entity and sharing ownership between the domestic and foreign company. Greenfield investment involves building a new facility or acquiring land in a foreign country, which involves significant equity investment. Acquisition involves purchasing an existing company, which also involves significant equity investment.

Which of the Following Entry Mode Does Not Involve Equity