Which of the following has the highest cost and risk, but offers the most control in operating a business overseas?
A) franchising
B) licensing
C) foreign direct investment
D) outsourcing

Question

Quizplus · Accepted Answer

Foreign direct investment involves establishing a wholly-owned subsidiary, joint venture, or acquiring an existing company in a foreign market. This has the highest cost and risk as it involves significant capital investments, regulatory compliance, and operational risks. However, it offers the most control in operating a business overseas as the company has complete ownership and management control over the foreign venture.

Which of the Following Has the Highest Cost and Risk