Which of the following international strategies involves the highest level of risk and investment?
A)exporting
B)franchising
C)strategic alliances
D)foreign subsidiary

Question

Quizplus · Accepted Answer

A foreign subsidiary involves the highest level of risk and investment because it requires establishing a new legal entity in a foreign country, which typically entails significant investment in infrastructure, personnel, and operations. This also involves assuming more risk because the parent company has a direct financial stake in the success or failure of the subsidiary. In contrast, exporting, franchising, and strategic alliances involve comparatively lower levels of investment and risk.

Which of the Following International Strategies Involves the Highest Level