The most expensive and risky entry mode is
A) wholly owned subsidiaries.
B) joint ventures.
C) franchising.
D) strategic alliances.

Question

Quizplus · Accepted Answer

As noted, wholly owned subsidiaries are typically the most expensive and risky entry mode. With franchising, joint ventures, or strategic alliances, the risk is shared with the partners of the firm. With wholly owned subsidiaries, the entire risk is assumed by the parent company. The risks associated with doing business in a new country (e.g., political, cultural, and legal) can be lessened by hiring local talent.

The Most Expensive and Risky Entry Mode Is