An MNC uses which international strategy for entering a foreign market by simply shipping goods produced in the company's home country to other countries for marketing to minimize risk and to experiment with a specific product?
A) licensing
B) joint ventures
C) exporting
D) production sharing
E) acquisitions

Question

Quizplus · Accepted Answer

Exporting is the strategy of entering a foreign market by simply shipping goods produced in the company's home country to other countries for marketing to minimize risk and to experiment with a specific product. This allows the MNC to test the waters before making a larger investment in a foreign market. Licensing involves giving another firm the right to use the MNC's intellectual property in return for royalties. Joint ventures involve partnering with a local firm in a foreign market. Production sharing involves sharing production activities with local firms in a foreign market. Acquisitions involve purchasing an existing firm in a foreign market.

An MNC Uses Which International Strategy for Entering a Foreign