Service organizations that contract with local organizations and thereby share the risks and rewards of entering the market use a(n)_________ strategy for entering a foreign market.
A)foreign direct investment
B)licensing and franchising
C)joint venture
D)accommodation
E)standardization

Question

Quizplus · Accepted Answer

The strategy described in the question is that of a joint venture, which involves partnering with a local organization to share the risks and rewards of entering a foreign market. Foreign direct investment involves establishing a wholly-owned subsidiary in the foreign market, while licensing and franchising involve granting permission to use the company's intellectual property in exchange for fees or royalties. Accommodation and standardization are not directly related to entering a foreign market through partnerships or joint ventures.

Service Organizations That Contract with Local Organizations and Thereby Share