Historically, firms making a foreign direct investment have generally preferred:
A) direct exporting.
B) joint ventures.
C) strategic alliances.
D) wholly owned subsidiaries.
E) contract manufacturing.

Question

Quizplus · Accepted Answer

Historically, firms making a foreign direct investment have generally preferred wholly owned subsidiaries as they offer greater control over operations and can result in higher returns on investment compared to other modes of entry such as joint ventures or strategic alliances. Contract manufacturing and direct exporting are not considered foreign direct investment modes of entry.

Historically, Firms Making a Foreign Direct Investment Have Generally Preferred